(RTTNews) – Gold prices have edged higher on Tuesday, adding to gains from yesterday’s session, as markets brace for the interest rate announcement by the U.S. Federal Reserve tomorrow while the impasse in the U.S.-Iran conflict continues.
Front Month Comex Gold for December delivery has advanced by $34.90 (or 0.86%) to $4,073.30 per troy ounce.
Front Month Comex Silver for December delivery has inched higher by $0.119 (or 0.22%) to $54.460 per troy ounce.
Uncertainty on which direction the U.S.-Iran conflict is heading continues while markets anticipate some form of a breakthrough news in the renewed diplomatic efforts for de-escalation in the Middle East conflict.
On Sunday, a delegation from Qatar visited Iran to conduct high-level talks. Of note, Qatar has been at the forefront of the Arabian nations that are actively engaged in mediating and facilitating the exchange of communications between the U.S. and Iran for a permanent end to the conflict.
The war, which began in late February, is heading into its ninth month, leaving the Strait of Hormuz closed for international energy exports from the Arabian gulf to the rest of the world.
Yesterday, focusing on regional security, top security officials from Saudi Arabia, Turkey, and Pakistan convened for a four-nation summit hosted by Iran’s Supreme National Security Council. Iran’s team was headed by Mohsen Rezaei, the Secretary of Iran’s Supreme National Security Council.
Despite no official news on any agreement, the possibilities for a diplomatic resolution tempered concerns of a broader escalation in the Middle East and allayed energy disruption concerns. Consequently, crude oil prices experienced downward pressure.
Today, the WTI crude oil for December was last seen trading, down by $1.76 (or 1.73%), at $100.00 per barrel.
Last week, the New York Times reported that the U.S. and Israel are preparing to conduct a joint military operation against Iran after the November midterm elections in the U.S.
Yesterday, CNN reported that U.S. forces are readying for a big-scale attack on Iran within 96 hours of receiving orders from Trump. The report highlighted that the attacks could be very large this time. Of note, the earlier strikes conducted by the U.S. on Iran allowed Iran to get back to shape quickly, which apparently, the U.S. does not want to happen now.
On the monetary front, the two-day October meeting of the U.S. Federal Reserve that kicked off today concludes tomorrow.
Analysts are anticipating that the Fed will leave interest rates unchanged though a December hike is counted as a near-certainty.
The Consumer Price Index increased in September, revealing the annual inflation rate up to 3.70%.
The Fed raised the rates for the first time since 2023 last month, increasing rates by 25 basis points to the range of 3.75% to 4.00%.
On the economic front, data from Automatic Data Processing revealed that private employers added an average of 16,750 jobs per week for the four weeks ending October 10, down from an average weekly gain of 17,500 in the previous four-week period, marking a second consecutive slowdown in hiring.
The U.S. dollar index was last seen trading at 102.27, up by 0.32 (or 0.31%) today.
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