Gold prices edged higher ahead of Fed rate meeting
Special Topic: The Federal Reserve’s interest rate decision is coming, and the market is divided on expectations of interest rate hikes. Gold prices rose slightly as investors awaited the Federal Reserve's interest rate decision and Chairman Kevin Warsh's speech. Group analyst Soojin Kim said: "The market currently believes that the probability of the Fed raising interest rates by 25 basis points is about one-third. Policymakers need to weigh-inflation data fell back in June, but rising oil prices have once again brought inflationary pressure." "Since the outbreak of the conflict, gold prices have fallen by nearly 25%, but continued bargain hunting has supported gold prices at the $4,000 per ounce mark." Metals analyst Tony Sage commented that on the eve of the announcement of the Federal Reserve's interest rate decision, the hawkish monetary policy environment continued to put pressure on precious metals. He said the market is currently pricing in expectations that the Federal Reserve will raise interest rates twice this year, which may support bond yields and weaken gold's appeal. He added that other major central banks such as the Bank of Japan and the Bank of England are also expected to raise interest rates this year. During early European trading, New York gold futures rose 0.2% to trade at $4,045.80 per troy ounce.