Gold firms to two-week peak on softer dollar; Fed outlook in focus
GLD•Other precious metals also advance
Elsewhere, spot silver XAG= rose 2.2% to $60.09 per ounce, platinum XPT= gained 1% to $1,645.86, and palladium XPD= inched up 1.7% to $1,303.25.
Dollar, Middle East tensions and oil prices in focus
The U.S. dollar index softened on Wednesday, making greenback-priced bullion more affordable for buyers overseas.
U.S. Secretary of State Marco Rubio said Washington is willing to negotiate an end to the Iran crisis but Tehran is not serious about talks.
The widening conflict led four tankers loaded with Saudi crude for Asia to reverse course in the Red Sea on Wednesday after threats from Yemen's Iran-aligned Houthis, who control the coast on the southern route out.
Oil prices rose to a near six-week high on the news.
Elevated oil prices due to Gulf supply disruptions have been weighing on gold prices as they raised expectations of higher-for-longer interest rates, which tend to diminish the appeal of non-yielding gold.
Fed outlook and rate expectations remain the key market driver
Meanwhile, the Fed is likely to keep its key interest rate steady for the rest of 2026, data from a Reuters Poll showed, with markets pricing in two rate hikes by the end of March next year.
Traders anticipate about a 72% chance of an interest rate hike in September, according to the CME FedWatch Tool.
Investors are now eyeing the FOMC interest-rate decision meeting next week for further clues on the Fed's monetary stance.
