Global gold prices closed down $38.30, hitting a one-week low. COMEX gold futures for August delivery settled at $4,038.70 per ounce, down 0.94%, pressured by a stronger US dollar which held near a one-month high. Investors are watching the Federal Reserve meeting outcome and the Fed chair's comments on Wednesday, as well as the PCE inflation data on Thursday, to assess the interest rate outlook. Markets are pricing in a 71% chance the Fed will hold rates steady at this meeting and a 75% chance of a hike at the September meeting. Commerzbank cut its year-end gold price forecast by $300 to $4,500 per ounce. On the geopolitical front, the US president said talks with Iran are progressing positively, but if they fail, military strikes could resume.
Commerzbank AGCommerzbank cut its year-end gold price forecast by $300 to $4,500 per ounce, which is negative for the bank's commodities outlook.