ع
Emirates News Agency reported that gold held steady as market attention turned to the Federal Reserve’s rate decision scheduled for July 29. Spot gold showed minimal movement in early trading, remaining below the $4,100 level it has occupied since mid-July. August gold futures opened with a slight uptick, reflecting cautious positioning by traders monitoring U.S. monetary policy developments.
Yahoo Finance data placed the price of gold at $4,027 per troy ounce on the morning of July 29, with futures contracts for August delivery starting at $4,083. The metal has traded within a narrow range in recent sessions as participants assessed the likely outcome of the Fed’s two-day meeting. Analysts indicated that a decision to hold rates steady appeared largely priced into current levels.
The World Gold Council mid-year outlook suggested gold was aligned with its macroeconomic valuation framework and could trade around $4,100 plus or minus 5 percent under stable conditions. That projection factored in the possibility of one rate adjustment by October. The council’s assessment came as broader market forecasts for the year ahead underwent revisions.
Goldman Sachs reduced its end-2026 gold price target to $4,900 per ounce from an earlier $5,400 projection, according to a financial assessment. HSBC lowered its forecast to $4,560 per ounce while J.P. Morgan anticipated $4,500 in the final quarter. These institutions cited expectations that the Federal Reserve would refrain from rate cuts throughout 2026 as the main driver behind the adjustments.
A Reuters dispatch noted that gold fell more than 1 percent in June after the Fed held rates but signaled a possible hike later in the year, pushing the dollar higher. Similar dynamics have influenced trading in July, with gold briefly dipping below $4,000 amid renewed rate-hike speculation and elevated oil prices. Geopolitical tensions have added further layers to inflation risks that typically weigh on non-yielding assets.
Federal Reserve officials were expected to leave the benchmark rate unchanged at the July 29 announcement, according to prevailing market probabilities. The decision follows a period in which gold has recovered from earlier declines but has yet to reclaim peaks seen earlier in 2026. Investors will parse accompanying statements for clues on potential moves in December when rate-hike odds stand near 78 percent.
