【Gold Price Trend】Gold Price Maintains Narrow Range Around $5,000 Awaiting Interest Rate Decision Results - Focus on Fed's Views on Energy Price Increases and Weak Labor Market

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Before the Federal Reserve announces its interest rate decision, gold prices remain range-bound around $5,000. The market is weighing the Fed’s rate cut path against inflation risks from the Middle East war. Gold is currently at $4,998.5, down 0.1%.

Although the market has already expected the Fed to keep interest rates unchanged at the policy meeting, investors will closely watch the Fed’s views on rising energy prices and a soft labor market.

The Middle East war has entered its third week, with crude oil prices continuing to rise. The US and Israel are still conducting attacks, and Iran has confirmed the death of National Security Advisor Ali Larijani. Tehran continues to strike energy infrastructure in the Persian Gulf region, and shipping through the Strait of Hormuz is nearly at a standstill.

Supply shortages and rising oil prices have sparked inflation concerns and reduced the likelihood of rate cuts by the Fed. Since precious metals do not pay interest, higher borrowing costs are unfavorable for their performance.

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