Gold has been trading lower below $3,340 since the start of the week as tensions ease in the Middle East and market participants await further statements from Fed Chairman Jerome Powell in the near future.
At 9.20 am, gold was at $3,330.38, up 0.20% since it opened in early trading Wednesday in the Asian session.
The yellow metal retreated from recent highs after news of a ceasefire between Israel and Iran. The ceasefire between the two countries came into effect after four waves of Iranian attacks on Israeli-occupied territory.
Zaner Metals Vice President Peter Grant believes that the easing of tensions in the Middle East is the main factor weighing on gold and the weakening of key support that is dragging the market towards riskier assets.
Additionally, Jerome Powell reiterated his stance that policymakers will not rush to change the current position, saying that the US central bank will continue to watch the state of the economy before implementing the next rate cut.
Financial markets expect the Fed to make two cuts by the end of 2025, as well as one each in 2026 and 2027.
