Gold traded above $4,300 per ounce on Wednesday and was up more than 2% for the week, as investors awaited the signing of a US-Iran peace agreement that is expected to restore oil flows through the Persian Gulf and help ease concerns over inflation and interest rates. The two countries are set to sign an interim deal in Switzerland on Friday, offering Tehran broad economic incentives, including the immediate resumption of its oil exports.
Market participants also focused on the Federal Reserve’s upcoming policy decision, where officials are widely expected to keep interest rates unchanged. The meeting will be the first chaired by Kevin Warsh, though he is not expected to submit a “dot” to the FOMC’s quarterly rate projections. Earlier this week, the Reserve Bank of Australia left its benchmark interest rate unchanged at 4.35%, while the Bank of Japan raised its policy rate by 25 basis points to 1%.
