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Gold steadies after nearly 2% drop as traders weigh Fed and Middle East risks

Gold is trading around $4,060 after an intraday low near $4,022, with September rate hike odds at 78% per CME FedWatch.

Reported · Written up by our desk · Precious Metals

Gold (XAU/USD) steadied on Friday after falling nearly 2% the prior day, as traders balanced expectations for a hawkish Federal Reserve against ongoing Middle East risk, FXStreet reports.

The precious metal was quoted around $4,060, after hitting an intraday low near $4,022, with a pullback in Oil weighing on the US dollar and Treasury yields and offering some support to gold.

Still, upside appears capped as the market narrative stays tied to higher rates, according to the CME FedWatch Tool which shows a 78% chance of a rate hike in September, while rates are widely expected to be unchanged at the July 28-29 meeting.

Geopolitical tensions remain a factor, with the US completing its 13th consecutive night of strikes on Iran and the conflict threatening major energy-shipping routes, even as traders look ahead to the S&P Global Purchasing Managers Index data for direction.

Latest closeGold $4,051.10 ▼2.3%

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