NEW YORK: Gold prices edged higher on Wednesday as investors awaited the US central bank’s first policy decision under new Chair Kevin Warsh, along with further details of the US-Iran peace agreement for further direction.
Spot gold was up 0.3 percent at USD4,344.47 per ounce by 11:09 a.m. EDT (1509 GMT). US gold futures rose 0.2 percent at USD4,364.70.
“Gold buyers may be betting on a dovish Warsh later today, grinding higher despite indifferent stocks, higher yields and a higher dollar,” said Tai Wong, an independent metals trader.
The Federal Reserve’s rate decision, policy statement and updated policymaker projections will be released at 2 p.m. EDT (1800 GMT). Warsh, who replaced former Fed chief Jerome Powell last month, will hold a press conference half-an-hour later.
“Looking at the charts, prices may push higher toward USD4,350 if USD4,300 proves reliable support. Weakness below USD4,300 could trigger a selloff back toward the USD4250–USD4200 per ounce support area,” said Lukman Otunuga, senior research analyst at FXTM.
Spot gold touched a near six-month low last week as inflation fears stoked by the Iran conflict boosted expectations of US rate hikes. While gold is often seen as a hedge against inflation, elevated interest rates tend to pressure bullion, as it offers no yield.
Prices rebounded after the US and Iran agreed on a framework deal.
However, US President Donald Trump said that the agreement reached this week with Iran was not final, and that he could resume a bombing campaign if he did not like it.
“Gold and silver could hit a cyclical low between late 2026 and early 2027. In our baseline scenario, gold could trade at an average of around USD4,000 per ounce by the end of the year, whilst silver could settle at around USD60,” Intesa Sanpaolo economist Daniela Corsini said in a note.
Among other metals, spot silver gained 0.2 percent to USD70.30 per ounce. Platinum lost 1.2 percent to USD1,782.23 and palladium fell 0.2 percent at USD1,349.36.
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