Gold Prices Hold Steady at $2,030 Amid Fed Rate Decision Anticipation.
On Wednesday, gold prices hovered at approximately $2,030 per ounce, maintaining a consistent trading pattern as market participants awaited the US Federal Reserve's decision on monetary policy. Expectations are high that the Fed will keep current interest rates. Key attention is on Fed Chair Jerome Powell's upcoming comments for indications of possible rate cuts within the year.
Nevertheless, more robust than anticipated, recent US economic data has lessened enthusiasm for potential rate reductions, exerting pressure on gold prices. Current market predictions indicate a below 50% likelihood of a Fed rate cut in March, a decrease from the 73% probability noted at the beginning of the year, as per CME's FedWatch Tool. Additionally, investors are exercising caution due to escalating geopolitical tensions in the Middle East, especially after a recent lethal drone strike on US forces near the Jordan-Syria border.