Gold prices are rising moderately: what’s behind the trend
29 July 15:11
Gold is holding steady on Wednesday, July 29, supported by technical buying, while investors await the U.S. Federal Reserve’s decision, which will be announced today at 9:00 p.m. Kyiv time, according to "Komersant Ukrainian", citing Reuters.
The spot price of gold rose 0.12% to $4,031.84 per troy ounce.
“Gold is finding support today thanks to dip-buying near the psychologically important $4,000-per-ounce mark, as well as against the backdrop of prospects for a diplomatic détente between the U.S. and Iran and market expectations of a pause by the Fed,” said Nikos Tsabouras of Jefferies.
It is widely expected that the U.S. central bank will not change interest rates today. At the same time, about 31% of traders are pricing in a 25-basis-point rate hike, according to the CME’s FedWatch tool.
“Today’s Fed decision and the subsequent press conference could trigger significant volatility. Any hawkish signals will pave the way for a new 2026 low, which currently stands at $3,941, while any dovish hint would give the precious metal the opportunity to continue its rally above $4,100,” added Tsaburas.
Meanwhile, traders estimate the probability of a rate hike at the central bank’s September meeting at 77%.
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The Bank of England and the Bank of Japan are also expected to keep interest rates unchanged this week and warn of the risks of accelerating inflation. On Tuesday, Commerzbank lowered its gold price forecast for the end of 2026 to $4,500 per troy ounce and said it expects silver to rise to $67 per troy ounce.
Palladium fell 1.1% to $1,255.46 per ounce, while silver rose 0.9% to $57.66 per ounce.
Meanwhile, the price of platinum fell by 1.16% to $1,586.27.
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