Gold prices stabilize with monthly gains as market await Federal Reserve decision

(MENAFN) Gold prices remained stable in early Asian trading on Wednesday, maintaining a monthly gain driven by rising optimism about a potential U.S. interest rate cut. Spot gold was trading at USD2,407.85 per ounce by 0200 GMT, reflecting a more than 3 percent increase for the month. U.S. gold futures saw a slight uptick of 0.1 percent, reaching USD2,405.60. The Federal Reserve is anticipated to keep interest rates unchanged at the end of its two-day meeting later Wednesday, while market participants are eager for indications that rate cuts could begin in September.

Kyle Rodda, a financial markets analyst at Capital.com, noted that market sentiment is heavily focused on whether the Fed will signal a forthcoming rate cut and the start of a broader policy easing cycle. Gold prices are expected to rise if the Fed's announcement suggests multiple rate cuts are on the horizon. Additionally, traders are closely monitoring the U.S. Census Bureau's employment report due later in the day, as well as Friday's U.S. jobs report. Recent data revealed a decrease in U.S. job openings, which fell by 46,000 to 8.184 million as of the end of June.

On the geopolitical front, tensions have heightened following an Israeli airstrike in Beirut that Israel claims killed Hezbollah's top commander. In response, U.S. officials reported conducting a strike in Iraq for self-defense, further escalating regional tensions. Should these tensions intensify significantly, gold's appeal as a safe haven is expected to surge.

In the realm of other precious metals, silver saw a modest increase of 0.2 percent, trading at USD28.44 per ounce. Platinum rose by 0.7 percent to USD966.13 per ounce, while palladium climbed 1 percent to USD898.13 per ounce. Despite these increases, both platinum and palladium are on track for a monthly decline. 

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