Gold Prices Fluctuate Amidst Inflation Concerns and Rate Expectations

The price of gold has continued to fluctuate amidst renewed concerns over inflation and the upcoming Federal Reserve meeting. Despite the escalation in Middle East tensions, which typically boosts gold's safe-haven appeal, investors are cautious due to rising oil prices and expectations for higher interest rates.

Gold prices remain near $4,020 per ounce (UTC+8) after two consecutive trading days of decline. The market is focused on the Federal Reserve's impending monetary policy decision, with a general consensus that interest rates will be kept unchanged but investors closely watching statements regarding inflation, employment, and future interest rate paths.

Market expectations suggest a 76.6% probability of a rate adjustment in September, indicating investors believe future borrowing costs may remain high. A stronger U.S. dollar also puts pressure on gold prices as it increases the cost for non-dollar investors to buy gold.