Gold Prices Stable Amid West Asia Talks and Interest Rate Outlook

Gold prices remained steady on August 4 as market participants awaited the outcome of talks in West Asia, which could influence the US Federal Reserve's interest rate decision. The Fed's Bank of New York President John Williams stated that interest rates are well-positioned due to expected easing of inflation during the second half of the year.

The US and Iran signalled ongoing negotiations to restore shipping through the Strait of Hormuz, raising hopes for a pickup in supply that would soften energy-driven inflation. Oil prices also stabilised after declining on Monday.

Citi Research analysts predict gold prices could stagnate or decline over the next month before rallying to $4,500 an ounce in the fourth quarter. They base this forecast on their assumption that the US-Iran conflict will end and Hormuz flows normalise by September-December.