Gold shines amid anticipation of US Federal Reserve meeting

Gold rose today as a ceasefire in the Middle East led to lower oil prices, easing concerns about inflation and the prospect of interest rates remaining elevated for longer, while investors await decisions by monetary policymakers this week at the Federal Reserve (the US central bank) meeting on interest rates. Spot gold rose 0.9 percent to $4,089.03 per ounce.

US gold futures for August delivery rose 0.5 percent to $4,090.80. Ross Norman, an independent analyst, said, “Precious metals have started to rise this week, supported by the ceasefire in the Middle East. Oil prices fell sharply, and the US dollar and US Treasury yields also declined. The dollar index dropped 0.2 percent, reducing the cost of dollar-denominated gold for buyers holding other currencies.”

A senior Iranian official told Reuters yesterday that Iran would halt its attacks as long as the United States does the same. These developments came after Washington suspended its bombing campaign against Iran following concerns expressed by advisors to US President Donald Trump about the dwindling US arsenal.