Gold climbs before US Fed rate decision, ounce reaches $4,129

Gold prices climbed to a two-week high on Wednesday, supported by technical buying, as investors await next week’s US Federal Reserve meeting for signals on interest rate outlook.

Spot gold rose 1.3 percent to $4,129.43 per ounce after reaching its highest level since July 7 earlier in the day. US gold futures for August delivery gained 1.4 percent to $4,134.50.

According to Reuters, rising tensions in the Middle East have pushed oil prices higher and fueled inflation concerns, boosting expectations of an interest rate hike. This led gold to record its largest weekly drop since early June during last week.

Buyers are returning to the market seeking high-value investment opportunities after the recent pullback, and hopes for diplomatic progress between the United States and Iran are also influencing price movements, according to Tim Waterer, chief market analyst at KCM Trade.

A Reuters poll showed experts expect the Federal Reserve to keep its main interest rate unchanged through the end of 2026.

Among other precious metals, spot silver rose 1.6 percent to $59.71 per ounce, platinum gained 1.9 percent to $1,659.97, and palladium increased 2.2 percent to $1,310.50.