🚨 FEDERAL FUNDS RATE DECISION – TOMORROW 🚨

Gold stayed below $4,600 on Wednesday after falling nearly 2% on Tuesday, hitting its lowest level in a month.

The main reason is growing concern about inflation. Peace talks between the US and Iran have slowed down, and the Strait of Hormuz remains closed. This is a major oil shipping route, and its closure has disrupted around 20% of global oil supplies. As a result, oil prices have surged, increasing inflation fears worldwide.

US President Donald Trump said Iran wants the US to remove its naval blockade while talks continue. However, until an agreement is reached, uncertainty remains high.

Higher inflation could force central banks to keep interest rates elevated for longer, or even raise them further. This is negative for gold because gold does not pay interest, making it less attractive compared to other investments when rates are high.

Earlier this week, the Bank of Japan kept interest rates unchanged. Investors are now closely watching upcoming policy decisions from the Federal Reserve, European Central Bank, Bank of England, and Bank of Canada later this week. wants the US to remove its naval blockade while talks continue. However, until an agreement is reached, uncertainty remains high.

Gold prices are rising as tensions in the Middle East begin to ease. This follows an announcement by U.S. President Donald Trump to temporarily pause a plan aimed at providing safe passage for ships through the Strait of Hormuz, reducing immediate geopolitical risks. According to analyst Vivek Dhar, gold prices have generally moved opposite to Middle East tensions since peaking earlier this year, but the current rise is being supported by other factors. These include growing hopes for a ceasefire, expectations of future interest rate cuts as high energy prices slow global economic growth, and concerns about central bank independence. As a result, gold remains strong, with spot prices up about 1.5% and trading near $4,625 per ounce.