Commodities
Home›Commodities›Precious Metals›Gold holds above $4,000 as investors await next week’s…
Gold holds above $4,000 as investors await next week’s Fed decision
Gold August futures opened at $4,013.4 per troy ounce and are trading around $4,063.4, with CME FedWatch showing a 16.6% chance of a 25-basis-point rate increase.
Gold prices stayed above $4,000 on Tuesday, July 21, as investors looked ahead to the Federal Reserve’s next policy decision. Yahoo Finance reported that gold August futures opened at $4,013.4 per troy ounce, down 0.1% from Monday’s close, before moving higher to $4,063.4 per troy ounce as of 8:20 a.m. ET.
According to Yahoo Finance, gold has been trading in a tight range near $4,000 over the past week as attention centers on updates related to the Iran war and the upcoming interest rate decision next week. The Fed meets next week and is scheduled to announce its decision on Wednesday.
CME FedWatch data cited by Yahoo Finance suggests most investors expect no change to the fed funds rate, while the implied odds of a 25-basis-point increase stand at 16.6%. The outlet said ongoing Middle East fighting could elevate inflation risk, which in turn raises the chance of higher rates that may weigh on non-yielding assets like gold.
Latest closeGold $4,117.00 ▲1.1%