Gold Price Waivers as Fed Rate Outlook Weighs on Investors

The price of gold wavered on Tuesday as investors weighed the Federal Reserve's interest-rate path after tensions in the Middle East eased.

Bullion traded around US$4,050 an ounce, having seen a 1% gain in July, its first monthly increase since February.

The environment for gold is 'a little bit better' after the Fed meeting, according to Samantha Dart, co-head of global commodities research at Goldman Sachs, who noted that fears of higher interest rates decrease investor appetite for gold.

Gold has been down by over 20% since the US-Iran war began more than five months ago, with high energy prices stoking inflationary pressures and raising the likelihood that interest rates will stay higher for longer.