FX.co ★ Gold Steadies on Wednesday

Gold prices remained stable at approximately $3,320 per ounce on Wednesday, following a 1.3% decline the previous day. This stability occurred as traders evaluated developments in the Middle East alongside disappointing US economic data, which fueled anticipations of potential interest rate cuts from the Federal Reserve. The ceasefire between Israel and Iran, though tenuous, appeared to be holding, which led to a reduction in the demand for gold as a safe-haven asset. Nonetheless, there was lingering caution in the market after a US intelligence report indicated that recent American attacks on Iranian nuclear installations only managed to postpone Tehran's nuclear ambitions by a few months. In the United States, consumer confidence experienced an unforeseen decline in June, leading to heightened worries regarding the economic repercussions of tariffs and challenges within the labor market. This development reinforced the expectation of upcoming rate cuts by the Federal Reserve, with financial markets increasingly anticipating such measures before the year's end. Federal Reserve Chair Jerome Powell stated that there is no immediate urgency to lower rates, yet acknowledged that reductions might be necessary should the economic environment deteriorate further. He also emphasized the need for clarity regarding tariffs before making any policy adjustments.