Spot gold rose 0.3% to $4,342.56 an ounce by 22:20 ET (02:20 GMT), while U.S. gold futures also gained 0.3% to $4,368.40. The metal has now climbed for five straight sessions after rebounding from recent multi-month lows near $4,000 per ounce.<\/p>\n
Sentiment was bolstered by optimism over a U.S.-Iran accord aimed at ending hostilities in the Middle East. The agreement includes provisions allowing Iran to resume oil exports and extends a ceasefire while negotiations continue. These developments have pushed crude prices sharply lower and reduced fears of a renewed energy-driven inflation shock.<\/p>\n
Lower energy prices have led investors to scale back expectations for tighter monetary policy, which is generally supportive for non-yielding assets such as gold. The metal has also benefited from weakness in the U.S. currency, with the U.S. Dollar Index hovering near a 10-day low.<\/p>\n
Investor attention is now centered on the Federal Reserve\u2019s policy announcement due later on Wednesday, the first under Chair Kevin Warsh. The central bank is widely expected to keep interest rates unchanged. However, markets will closely examine updated economic projections and the \u201cdot plot\u201d for signals on the future path of policy, particularly any indication of whether policymakers still see scope for easing later this year.<\/p>\n
A more hawkish tone from the Fed could lift U.S. Treasury yields and the dollar, potentially limiting further gains in gold following its recent rally.<\/p>\n
Underlying structural demand for gold remains firm. A World Gold Council survey cited in the report showed that 45% of central bank reserve managers expect to increase their gold holdings over the next year, highlighting ongoing interest in the metal as a portfolio diversifier and geopolitical hedge.<\/p>\n
Among other precious metals, silver prices rose 0.6% to $70.47 per ounce, while platinum added 0.4% to $1,815.72 per ounce.<\/p>\n
What drove gold prices higher in Asian trading?<\/strong> What are markets watching from the Federal Reserve?<\/strong> How are central banks positioned toward gold?<\/strong> How did other precious metals perform?<\/strong>
Gold prices rose on the back of lower energy prices, a weaker U.S. dollar, and optimism over an interim U.S.-Iran peace agreement that reduced concerns about energy-driven inflation.<\/p>\n
Markets are focused on the Fed\u2019s policy decision, economic projections, and the dot plot for guidance on the future path of interest rates and the potential for policy easing later this year.<\/p>\n
According to a World Gold Council survey, 45% of central bank reserve managers expect to increase their gold holdings over the next year, indicating sustained demand for the metal.<\/p>\n
Silver rose 0.6% to $70.47 per ounce, and platinum gained 0.4% to $1,815.72 per ounce.<\/p>\n