Spot gold remained near $4,052.70 per ounce, up slightly by 0.08%, as oil prices and U.S. Treasury yields eased while the U.S. dollar stayed close to recent highs.

During the session, gold traded between $4,021.20 and $4,083.10 per ounce. The rebound from the session low suggests that buying interest has returned, although further gains remain limited by resistance above.

Key Factors Influencing Gold

Brent crude fell to around $96.78 per barrel after previously rising above $102, helping to ease inflationary pressure. The 10-year U.S. Treasury yield also declined to around 4.68%, providing additional support for gold.

However, the U.S. Dollar Index remained near 101.47, continuing to weigh on precious metals. Meanwhile, tensions surrounding the Strait of Hormuz and the Red Sea continue to support demand for safe-haven assets.

Markets Await the Fed’s Decision

Investors currently expect the Federal Reserve to keep interest rates unchanged at its upcoming meeting. However, U.S. economic data remains relatively resilient, while oil prices continue to fluctuate sharply. As a result, inflation risks and the possibility of a surprise rate increase have not completely disappeared.

Conclusion

Gold is currently balancing between safe-haven demand and pressure from a strong U.S. dollar and elevated bond yields. The Fed’s decision, second-quarter GDP data and the PCE inflation report will be key factors determining the next major move in gold prices.

Source: Kitco