Gold Retreats for Third Consecutive Session Ahead of Fed Meeting and Inflation Data

Gold prices slipped for a third consecutive day, retesting the key $4,000 support level on Wednesday as optimism over diplomatic efforts to de‑escalate Middle East tensions faded following renewed U.S. and Saudi airstrikes in Iraq.

A stronger dollar kept gold in a defensive stance as investors awaited the Federal Reserve’s policy meeting and remarks from Chairman Warsh to gauge the central bank’s next steps, with a July meeting widely expected to leave rates unchanged.

Recent Middle East developments suggest potential upward pressure on gold prices if the conflict intensifies, likely keeping the metal under pressure, particularly if policymakers adopt a more hawkish tone today.

Attention will also turn to the release of the U.S. June PCE price index — the Fed’s preferred inflation gauge — scheduled for Thursday, which should provide further insight into the inflation outlook.

Overall, gold is expected to stay under heightened pressure, especially if the Fed signals further tightening — markets are already pricing in a September rate hike — potentially leading to a breach below $4,000 and a renewed downward acceleration.

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