Traders weigh the Fed's interest rate prospects, and the gold is low

On 29 July, on the eve of the Federal Reserve resolution on key interest rates, gold prices were slightly lower. The drop on the previous day was prolonged by the delivery of spot gold near $4020 in the early-roll deal. The interest rate swap market shows that the Fed has a probability of increasing interest rates by about one third of the 25 basis points, a level of uncertainty that has been abnormally high in recent years for markets near decision-making. Policymakers may find it difficult to reconcile lower-than-anticipated inflation data in June with higher oil prices due to renewed fighting this month. Gold prices have fallen by almost a quarter since the beginning of the American-Iraq war five months ago, and inflationary pressures have been exacerbated by high energy prices. However, supported by a low-cost purchase, the gold price has remained close to a critical support position of $4,000 per ounce since the end of June. Kim Xian