July 29 : Gold prices inched lower on Wednesday as the dollar held firm and market participants awaited the Federal Reserve’s policy decision for clues on inflation and the path of U.S. interest rates.
FUNDAMENTALS
* Spot gold fell 0.1 per cent to $4,021.87 per ounce by 0052 GMT. U.S. gold futures for August delivery lost 0.4 per cent to $4,021.70.
* The Fed will conclude its two-day policy meeting on Wednesday and is expected to hold interest rates steady.
* Market expectations indicate a 70 per cent chance of a status quo and a 30 per cent probability of at least a 25-basis-point increase, according to the FedWatch tool. Markets are pricing in a 76 per cent chance of an increase in September.
* Both the Bank of England and the Bank of Japan are widely expected to keep rates unchanged on Thursday and Friday, respectively, and caution against rising inflation.
* The dollar was perched near a one-month high, making greenback-priced bullion more expensive for holders of other currencies.
* U.S. Central Command said on Tuesday that Iran had launched multiple ballistic missiles “in an attempted surprise attack on U.S. forces based in the Middle East,” and that the missiles were successfully intercepted.
* Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, a Gulf source and a Western diplomat told Reuters on Tuesday.
* A U.S. official again rejected the idea of tolls or fees for ships transiting the strait.
* Commerzbank on Tuesday lowered its year-end gold price forecast to $4,500 per troy ounce and said it expects silver to reach $67 per troy ounce by the end of the year.
* Spot silver gained 0.1 per cent to $57.20 per ounce, platinum inched 0.1 per cent higher to $1,605.96, while palladium fell 0.1 per cent to $1,268.35.
