- Gold prices were steady in early Asian trade on Wednesday, but were set for a monthly gain on growing optimism about a possible U.S. interest rate cut, with focus shifting to the Federal Reserve's policy decision due later in the day.
- Spot gold remained at $2,407.85 an ounce, while US futures rose 0.1% to $2,405.60.
- The U.S. central bank is expected to keep interest rates unchanged later Wednesday at the conclusion of its two-day meeting, and policymakers will lay the groundwork to begin cutting rates in September.
- “The market wants to hear confirmation that a September rate cut is on the cards and will be the start of a policy easing cycle,” said Kyle Rodda, a financial markets analyst at Capital.com. “Gold will rally if the Fed’s tone indicates multiple cuts are coming.”
- Traders will also be watching the U.S. Census Bureau's employment report later today and the U.S. jobs report on Friday.
- Data released Tuesday showed that job openings in the United States fell by 46,000 jobs to 8.184 million jobs by the last day of June.
- Demand for gold as a safe haven will surge if tensions escalate significantly and war breaks out on Israel's northern border, Roda said.
- As for other precious metals, silver rose in spot transactions by 0.2% to $28.44 per ounce, platinum rose by 0.7% to $966.13 per ounce, and palladium rose by 1% to $898.13 per ounce.
