Gold prices rise 0.3 percent to $4,341 for fifth straight session as Fed decision, MidEast peace hopes support bullion
Investors are weighing easing geopolitical tensions and the Federal Reserve’s policy outlook
Gold prices climbed for a fifth consecutive session on Wednesday as growing optimism surrounding a potential U.S.-Iran peace agreement reduced expectations for further U.S. interest rate hikes, while investors looked ahead to fresh details on the proposed deal and the Federal Reserve‘s latest policy decision. The precious metal continued to attract buyers as markets weighed the prospect of easing geopolitical tensions alongside a potentially less aggressive monetary policy outlook.
Spot gold rose 0.3 percent to $4,341.12 per ounce as of 02:30 GMT, trading close to the one-week high reached on Monday. U.S. gold futures for August delivery also advanced 0.2 percent to $4,361.10 per ounce. The steady gains highlight gold’s continued role as a preferred store of value during periods of uncertainty, even as investors become more optimistic about diplomatic progress in the Middle East.
In the UAE, local gold rates also moved higher in line with global markets. The price of 24-carat gold increased by AED1 to AED522.25 per gram, while 22-carat gold rose to AED483.50 and 21-carat climbed to AED463.75. Meanwhile, 18-carat gold gained AED0.75 to AED397.50 per gram, and 14-carat gold advanced to AED310.00, reflecting the strength in international bullion prices.
Peace deal focus
Markets continued to digest emerging details of the proposed U.S.-Iran interim agreement aimed at ending the Middle East conflict. U.S. President Donald Trump said the deal would ensure Tehran does not develop a nuclear weapon, while a U.S. official indicated that Iran would be permitted to resume oil exports once the agreement is formally signed. The prospect of additional Iranian crude returning to global markets pushed oil prices toward their lowest levels in about three months, helping to ease concerns about energy-driven inflation. Lower inflation expectations can be supportive for gold because they reduce pressure on central banks to tighten monetary policy aggressively. Investors remain focused on whether the agreement will move forward as planned and how quickly its economic effects could filter through global markets. Although geopolitical risks have not disappeared, the possibility of improved regional stability has shifted attention toward the broader implications for inflation, commodity prices, and financial markets.
Read more: Gold prices rise 0.2 percent to $4,315 as U.S.-Iran peace agreement keeps markets on edge
Fed in spotlight
Attention is now turning to the U.S. Federal Reserve, with investors awaiting its latest policy decision and comments from policymakers later in the day. The central bank is widely expected to leave interest rates unchanged, but markets will closely analyze the accompanying statement and guidance for clues about the outlook for the remainder of the year. According to the CME FedWatch tool, traders now see a 59 percent probability of a U.S. interest rate hike in December, down from around 70 percent last week before news of the U.S.-Iran peace agreement emerged. The shift in expectations has provided additional support for bullion, which typically performs better in lower interest rate environments because it does not generate interest income. Alongside gold, other precious metals also posted gains during Wednesday’s session. Spot silver rose 0.3 percent to $70.38 per ounce, platinum advanced 0.5 percent to $1,812.80, and palladium added 0.3 percent to $1,355.65, underscoring broad-based strength across the precious metals market as investors balanced geopolitical developments with expectations for future monetary policy.
