Gold steady as traders anticipate FOMC outcomes – London Business News | Londonlovesbusiness.com

Gold stabilised after some volatile trading sessions.

Market participants could remain optimistic about gold as expectations of a softer monetary policy stay high.

However, volatility could increase as traders react to the outcome of the Federal Open Market Committee (FOMC) meeting on Wednesday.

While the central bank is expected to keep rates unchanged, any hints of future rate cuts will be closely watched. Looking ahead, markets will also focus on key US macroeconomic data, including the NFP report, which may add further volatility to the yellow metal while geopolitical risks in the Middle East could continue to bolster gold’s status as a safe-haven asset if tensions escalate.

Conversely, gold demand in China has weakened due to record-high prices, with bullion demand falling nearly 6% in the first half of the year compared to the previous year. Moreover, China’s net gold imports via Hong Kong dropped by 18% in June, posing risks for gold prices.