Gold slips to $4,034 ahead of Fed policy verdict

July 29, 2026 (MLN): Gold prices fell slightly on Wednesday as investors held back from taking fresh positions ahead of the US Federal Reserve's policy decision and remarks from Fed Chairman Kevin Warsh, which are expected to offer fresh direction on the inflation and interest rate outlook.

Currently, spot gold is slightly down 1.27% to $4,034.78 an ounce as of [10:52 am] PST, according to data reported by Mettis Global.

Market pricing suggests the Fed is widely expected (70%) to leave rates unchanged at this meeting, with only a small probability assigned to a rate hike, while a stronger likelihood of a move higher is being priced in for September, according to the FedWatch tool, CNBC reported.

Gold tends to move inversely with interest rate expectations, as higher borrowing costs raise the opportunity cost of holding a non-yielding asset, even though the metal is traditionally viewed as a hedge against inflation.

Elsewhere, the Bank of England and the Bank of Japan are also due to announce their respective rate decisions later this week, with both central banks broadly expected to keep policy rates unchanged while flagging concerns over inflationary pressures.

On the geopolitical side, tensions in the Middle East resurfaced after the US military said it had intercepted several ballistic missiles fired by Iran at American forces stationed in the region, describing the episode as a thwarted surprise attack by Tehran.

In other commodity markets, oil prices edged higher, supported by a decline in US crude inventories.

Among precious metals, silver rose nearly 1% to trade near $57.65 per ounce, platinum edged up slightly to around $1,600 per ounce, while palladium slipped by about 0.7% to near $1,261 per ounce.

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