Gold, Silver Prices Extend Gains On COMEX In Early Trade As Investors Await Fed Policy Outcome

Gold and silver prices moved higher on COMEX in early trade on Wednesday. In the process, they extended recent gains as investors weighed easing geopolitical tensions against caution ahead of the US Federal Reserve’s policy decision later in the day.

Gold rose 0.13% to $4,360.20 an ounce after touching an intraday high of $4,369.80. Silver gained 0.46% to $70.335 an ounce, supported by continued buying interest in precious metals.

At 1:21 am Eastern Daylight Time (EDT), gold August futures at COMEX stood at $4,345.70 an ounce, while silver July futures stood at $70.065 an ounce during the same time.

Fed Decision In Focus

Bullion traders shifted their attention to the Fed’s policy outcome and commentary, with interest rates widely expected to remain unchanged. Markets are looking for clues on the future rate path, especially whether policymakers signal an extended pause despite lingering inflation concerns.

Lower real interest rate expectations continued to support gold prices, as the metal does not generate any yield. Silver tracked gold’s strength and also benefited from improved sentiment in industrial-linked commodities.

Geopolitical Developments Keep Traders Cautious

Market sentiment remained firm even as reports suggested progress toward a tentative US-Iran understanding aimed at extending a ceasefire framework and allowing further negotiations. The easing of immediate tensions slightly reduced safe-haven demand.

Reports indicated that discussions could include provisions related to nuclear restrictions and oil flows, though no final deal has been confirmed.

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Central Bank Buying Supports Gold

Underlying demand trends for gold remained supportive. A recent World Gold Council survey showed that nearly half of global reserve managers expect to increase their gold holdings over the next 12 months, reinforcing bullion’s role as a long-term strategic hedge.

Experts said continued central bank buying highlights gold’s appeal as an inflation hedge. They also pointed to geopolitical risks and currency trends, including weakness in the Indian rupee, as factors supporting bullion demand.

Sources:

CNBC TV18

Mint