Gold prices traded around $4,050 an ounce, moving little as traders weighed the Federal Reserve's rate decision against progress in Middle East diplomatic talks.
The Fed's decision, expected Wednesday, will signal the central bank's stance on inflation and growth—directly affecting the opportunity cost of holding non-yielding assets like gold. Persistent expectations for higher-for-longer U.S. interest rates could weigh on demand.
At the same time, progress in Middle East negotiations and prospects for reopening the Strait of Hormuz are keeping geopolitical risk in focus. Easing tensions would reduce safe-haven demand; renewed conflict would support it.
Gold ended the prior session 0.2 percent higher before stabilizing, holding above the $4,000 resistance level. The two opposing forces—Fed policy tightening and unresolved geopolitical risk—are producing a consolidation pattern as traders wait for a clearer signal from either front.
