Key Moments
- Spot gold inched up 0.1% to $4,333.64 an ounce, with futures at $4,353.32, after four straight sessions of gains.
- An interim U.S.-Iran agreement that extends a ceasefire and allows Iran to resume oil exports helped pull crude prices lower, easing energy-driven inflation concerns.
- Markets are now focused on the Federal Reserve’s policy decision under new Chair Kevin Warsh, with rates expected to remain unchanged but guidance seen as crucial.
Prices Steady After Recent Rebound
Gold prices were broadly stable on Wednesday, consolidating a four-session winning streak that followed a recovery from multi-month lows near $4,000 an ounce.
By 06:47 ET (10:47 GMT), spot gold was up 0.1% at $4,333.64 an ounce, while gold futures were largely flat at $4,353.32 an ounce.
| Instrument | Price (USD/oz) | Move | Time |
|---|---|---|---|
| Spot Gold | $4,333.64 | +0.1% | 06:47 ET (10:47 GMT) |
| Gold Futures | $4,353.32 | Mostly unchanged | 06:47 ET (10:47 GMT) |
Iran Agreement Cools Energy-Driven Inflation Worries
Support for bullion was underpinned by optimism surrounding an interim U.S.-Iran peace agreement aimed at curbing hostilities in the Middle East.
The deal reportedly includes measures that permit Iran to restart oil exports and prolong a ceasefire while talks continue. These developments have driven crude prices sharply lower, easing fears of an energy-led inflation surge.
As concerns over an inflation shock recede, investors have dialed back expectations for more aggressive monetary tightening, a backdrop that is typically favorable for non-yielding assets such as gold.
Weaker Dollar Adds to Bullion’s Appeal
Gold has also drawn support from a recent softening in the U.S. dollar. A weaker greenback can enhance the attractiveness of the metal by lowering its cost for buyers using other currencies.
Fed Decision and Warsh’s Debut Under the Microscope
Market participants are now turning their attention to the Federal Reserve’s policy announcement later in the day, the first decision overseen by new Chair Kevin Warsh.
The Fed is widely expected to leave interest rates unchanged, but investors will be focused on updated economic projections and the “dot plot” for guidance on the future policy trajectory. Any remarks from Warsh at a potential news conference following the decision will also be closely watched.
“We believe Warsh will need to provide investors confidence that the Fed will return to an easing bias as the spike in inflation proves transitory and offer a reassuring tone that any communication style changes (or otherwise) at the Fed won’t be dramatic,” analysts at Wolfe Research said in a note.
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