Gold prices remain range-bound: July 28 outlook

Gold prices are rising but remain capped as the FOMC's monetary policy decision looms, says Praveen Singh, Head Currencies and Commodities, Mirae Asset ShareKhan.

Spot gold traded up 0.20% to $4065 on July 28, after hitting an intra-day high of $4116, amid a sharp decline in oil prices and drone attacks by Iran militia from Iraq reported by Saudi Arabia.

The Trump Administration imposed tariffs of 10-12.5% on 60 trading partners, including the EU and China, under section 301 of the Trade Act 1974 as temporary 10% global tariffs expired.

Overnight implied rates reflect the Federal Reserve hiking rates 1.09 times by September, with probabilities of 81%, 86%, and 91% for September, October, and December rate hikes, respectively.

Money managers increased bullish gold bets by 4,439 net-long positions to 123,586 in the week ending July 21, the most bullish in about six months.