FX.co ★ Gold Rises to Two-Week High

Gold rose to about $4,125 an ounce on Wednesday, having earlier hit its highest level since July 7, supported by safe-haven demand and technical buying as investors tracked rising tensions in the Middle East and looked ahead to next week’s Federal Reserve meeting for signals on the US interest rate outlook. Geopolitical risks intensified after President Donald Trump warned of further strikes on Iran and vowed to retaliate if Iran-backed Houthi rebels disrupt shipping in the Red Sea. At the same time, Secretary of State Marco Rubio said the US remains open to an agreement with Iran, but questioned whether Tehran is prepared to accept terms Washington would find acceptable. Even so, gold traded below the record highs set in January, as elevated oil prices have stoked inflation concerns and reinforced expectations that interest rates will remain higher for longer. Markets are still pricing in two 25-basis-point rate hikes by March 2027, with a 70% probability that the first increase could come as early as September.