FX.co ★ Gold Edges Higher

Gold prices saw a slight increase on Wednesday, inching up to approximately $3,330 per ounce. This comes as a modest rebound from a recent two-week low as investors assess the durability of the ceasefire between Iran and Israel. In related developments, a preliminary assessment from U.S. intelligence revealed that the recent U.S. strikes on three Iranian nuclear sites have merely postponed Tehran's nuclear ambitions, heightening fears of escalating regional instability. Despite a U.S.-brokered truce, hostilities appear poised to persist, with mutual accusations of belligerence emerging immediately post-ceasefire initiation. On the economic front, Federal Reserve Chair Jerome Powell indicated that the central bank is likely to maintain the current interest rates until the ramifications of new tariffs become clearer. However, in his address to Congress, he did not dismiss the possibility of a rate reduction come July. This stance seems at odds with some of his colleagues at the Fed, who have recently advocated for a more accommodative policy in light of indicators such as a softening labor market and decelerating inflation.