Gold gains ground above $4,150 as Fed avoids policy signals, geopolitical risks stay in focus - Mitrade

AI desk brief

Gold is trading around $4,175/oz in early Asia, supported by fading expectations for an immediate Fed hike and by softer US real yields, with Deutsche Bank citing a broad global bond rally and the US 10-year yield down 12.7 bps to 5.06%. Markets now largely see the Fed on hold at the October meeting, while pricing a 91.8% probability of a December hike, leaving policy uncertainty but no clear near-term tightening signal from Chair Warsh.

Geopolitical risk is also underpinning the metal, with renewed Middle East tensions, Strait of Hormuz vessel attacks, and Russia-Ukraine headlines keeping safe-haven demand alive. Technically, XAU/USD remains below key resistance, with support around $4,053.65 and a first stabilization signal only on a close back above $4,185; the 100-day SMA at $4,240 remains the next major upside cap.