Gold Rate Today: Consolidating ahead of Fed’s decision
Spot gold is consolidating ahead of the FOMC monetary policy decision due tonight.
Dollar Index, crude oil and the Indian Rupee are largely steady.
The US Federal Reserve is widely expected to keep its overnight Fed Fund rate unchanged at 3.5%-3.75% for a fourth consecutive meeting; however, focus will be on the Bank’s stance, especially as Kevin Warsh, with his views of trimmed inflation, AI productivity and inflation, will attend his first meeting as a Fed Chair. Overall, we think that the Fed will be cautious on inflation front, which might be mildly negative for gold.
Crude oil prices have slumped nearly 40% from the cycle peak; however, yields remain elevated and overnight futures still price a rate hike by March 2027.
The New York Fed’s Services Business Activity Index fell 4 points to -10.1 in June 2026 as the Business activity continued to contract modestly in the region’s service sector. US import prices rose 1.9% m-o-m (prior 2%, forecast 1%).
Today’s US data include retail sales and pending home sales.
Gold, currently trading nearly 0.15% lower at $4325, is expected to range trade ahead of the Fed’s decision. In near term, the yellow metal may still test resistance around $4450 unless the Fed categorically hawkish. Support is at $4370/$4300, says Praveen Singh, Head of commodities at Mirae Asset ShareKhan.
