Gold held just under $4,100 on Wednesday morning, after the U.S. and Iran reignited attacks against each other and before the Federal Reserve closes its two-day rate meeting. August futures opened at $4,020.90, down 0.4% from Tuesday's close, while the price of gold rose to $4,090 by 8:17 a.m. ET. Traders put a 64.2% chance on rates staying unchanged.
Gold has remained remarkably steady for the last two weeks, and Wednesday morning did not change that. August gold futures opened at $4,020.90, down 0.4% compared to Tuesday's closing price. The price of gold was up to $4,090 as of 8:17 a.m. ET — still just under $4,100.
The renewed hostilities end a days-long lull in military action and came just before the Federal Reserve is set to conclude its rate-setting meeting this afternoon.
That war continues to apply opposing forces to the price of gold. On one side, continued high oil prices raise the likelihood of higher interest rates this year. On the other, geopolitical tensions can send investors flocking to gold when stocks and currencies become unpredictable.
The CME Group's FedWatch tool says there is a 64.2% chance the Fed will leave rates unchanged. It puts the odds of the central bank raising its target range by 25 basis points at 35.8%.
Wednesday's opening price sits 1.8% below where gold opened a week ago. It is also 0.9% under the level of a month ago. Against a year ago, the metal is up 21%.
For context, gold's one-year gain was 95.6% on Jan. 29.
Source: Yahoo Personal Finance
Trading involves risk.
Risk Disclaimer
