Gold Holds Steady Ahead of Fed Minutes as Middle East Tensions Persist
Gold prices held steady during the American session on Tuesday as investors tracked rising Middle East tensions and awaited minutes from the US Federal Reserve's June meeting for policy signals. Last week's weaker-than-expected US jobs data reduced expectations of near-term rate increases, while comments from Federal Reserve Chair Kevin Warsh that inflation continues to ease and policy decisions will remain data-driven further reduced expectations of additional monetary tightening. Markets priced a 60% chance of a September rate increase, while traders watched Wednesday's Fed minutes and developments after attacks on two tankers in the Strait of Hormuz lifted oil prices. "Bullion remains rangebound as it attempts to shift from capitulation to consolidation, supported by softer US data and a less hostile dollar and yield backdrop," wrote Saxo Bank analysts in a Tuesday report. At the time of writing, XAU/USD was trading at $4,157, down 0.19%.
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Gold prices held steady during the American session on Tuesday as investors tracked rising Middle East tensions and awaited minutes from the US Federal Reserve's June meeting for policy signals.
Last week's weaker-than-expected US jobs data reduced expectations of near-term rate increases, while comments from Federal Reserve Chair Kevin Warsh that inflation continues to ease and policy decisions will remain data-driven further reduced expectations of additional monetary tightening.
Markets priced a 60% chance of a September rate increase, while traders watched Wednesday's Fed minutes and developments after attacks on two tankers in the Strait of Hormuz lifted oil prices. "Bullion remains rangebound as it attempts to shift from capitulation to consolidation, supported by softer US data and a less hostile dollar and yield backdrop," wrote Saxo Bank analysts in a Tuesday report.
At the time of writing, XAU/USD was trading at $4,157, down 0.19%.