The yellow metal, popular as an inflation hedge, has slumped this year due to the ensuing aggressive rate hikes. Gold has underperformed its rival asset, the dollar. And now the market awaits another anticipated 75 basis point rate hike.
However, ahead of a pivotal FOMC decision, investors are optimistic that the Fed’s monetary policy tightening might come to an end in the near term, as the economic slowdown could bring down prices. Hence, gold could stabilize above the $1,700 level if an additional 75 basis points hike is not signaled for September.
