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17.08.202623:52:32UTC+00Gold Holds Firm as Fed Rate Hike Bets Ease

Gold hovered above $4,400 an ounce on Tuesday after rising for two consecutive sessions, supported by waning expectations of a Federal Reserve rate hike following a series of weak US economic reports. Markets now anticipate that the Fed will leave policy unchanged in September and are no longer fully pricing in a rate increase by year-end, a sharp shift from just a week earlier. Investors are awaiting the minutes of the Fed’s July meeting, as well as remarks from Chairman Kevin Warsh at the annual Jackson Hole symposium, for further guidance on the policy outlook. At the same time, traders remained alert to inflation risks as prospects for a new US-Iran agreement faded after President Donald Trump said he was not interested in extending the interim peace deal. In addition, gold continued to draw support from robust investment demand and sustained central bank buying, particularly from China.

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