Markets Await Federal Reserve Policy Decision

Financial markets are broadly focused on the upcoming US Federal Reserve monetary policy announcement, which marks the first meeting under new Chair Kevin Warsh. This anticipation has resulted in cautious, sideways trading across major currency pairs as investors await signals on the central bank's future policy path and its approach to managing the balance sheet.

Gold Holds Gains on Geopolitical Developments

Gold prices held firm above $4,300, rebounding from recent lows on hopes of a potential peace deal between the United States and Iran. While geopolitical developments provided support for the precious metal, market participants also remain focused on the looming Federal Reserve interest rate decision for further direction.

US Dollar Weakens Amid Mixed Rate Outlook

The US Dollar Index traded with a softer tone as markets awaited the central bank's announcement, providing a tailwind for dollar-denominated assets. This weakness was attributed in part to falling oil prices and a divided outlook on interest rates, with some traders not expecting a hike while other analysis points to a growing possibility of one later in the year.