There was little change in gold prices in volatile trading on Wednesday, as investors awaited statements by US Federal Reserve Chairman Jerome Powell to assess the impact of the Iran war on the economy in light of faltering peace talks.
The price of gold in spot transactions rose 0.1% to $4,597.07 per ounce by 02:43 GMT, after falling in the previous session to its lowest level since April 2.
US gold futures for June delivery settled at $4,610.20.
Investors expect the US central bank to keep interest rates unchanged at the end of its two-day meeting, which ends later on Wednesday.
Efforts to end the conflict with Iran have reached a dead end, with US President Donald Trump expressing his dissatisfaction with Tehran’s latest proposals, which he said informed the United States that it was in a “state of collapse” and that it was in the process of arranging its leadership.
Meanwhile, the price of Brent crude remains above $110 per barrel amid reports that the United States will extend its blockade of Iranian ports.
Investors will also focus on other central bank decisions this week, including the European Central Bank, the Bank of England and the Bank of Canada.
Standard Chartered said in a note, “We expect the movement of gold prices to be fragile in the near term, but we still see that prices will gain momentum in the coming months to once again touch unprecedented levels, as the fundamental factors (geopolitical tension, customs duties, and trade uncertainty) that support the rise remain in place.”
Silver rose in spot transactions 0.8% to $73.64 per ounce, platinum fell 0.4% to $1,930, and palladium fell 0.4% to $1,453.91.
