Gold held near $4,370 an ounce on Wednesday after a volatile start to the week, as investors looked ahead to key US inflation data that could offer fresh insight into the Federal Reserve’s policy path. Markets remain split on whether the Fed will deliver a 25-basis-point rate hike in September after pausing in July, with rising oil prices helping to sustain a hawkish tilt.
At the same time, traders evaluated the likelihood of a US–Iran agreement to reopen the Strait of Hormuz amid mixed signals. Pakistan’s defense minister said Washington and Tehran are “close to some sort of arrangement” on the strategic waterway, while separate reports suggested talks between Iran and Oman have reached an advanced stage.
Beyond geopolitics, gold continued to find support from robust investment demand and steady central bank buying, particularly from China. The People’s Bank of China added roughly 20 tons to its gold reserves in July, following a purchase of about 15 tons in June, the largest monthly increase since October 2023.
