Gold steady as investors await details of US-Iran deal, Fed verdict

Gold prices were steady ‌on Wednesday, near a one-week high, as investors awaited further details on the U.S.-Iran agreement and the Federal Reserve's policy decision from Kevin Warsh's debut meeting as Chair.

Spot gold was flat at $4,331.29 per ounce, as ​of 0420 GMT. U.S. gold futures for August delivery were down 0.1% at $4,351.40.

Bullion ​touched an over one-week high of $4,370.82 on Monday.

Details of a U.S.-Iran interim ⁠deal to end the conflict are emerging, with President Donald Trump saying it would rule out ​a nuclear weapon for Tehran and a U.S. official saying it would allow Iran to ​sell oil once signed.

Oil prices hovered near a three-month low on expectations of Iranian supply, easing inflation concerns.

"The rally (in gold) is losing some steam as all eyes turn to the monetary policy announcement from the Fed," ​said Ilya Spivak, head of global macro at Tastylive.

"This marks the first FOMC meeting ​to be chaired by Kevin Warsh and traders still seem unsure about how he will reconcile a hawkish record, ‌rising ⁠inflation, and pressure from a White House demanding a dovish pivot," Spivak said.

Most Fed policymakers now feel they will need to keep U.S. short-term borrowing costs on hold all year, projections due out later in the day are expected to show, with a small number seen pencilling in ​a rate hike to ​stop a spike ⁠in inflation from getting entrenched in the economy.

Traders see a 59% chance of a U.S. rate hike in December, down from about 70% ​last week before the U.S.-Iran peace deal announcement, according to the ​CME FedWatch tool. 

Gold tends ⁠to lose appeal when rates are high, as it does not yield interest.

"Over the longer term, structural support (for gold) is expected to persist, driven by ongoing Asian demand and continued central bank ⁠purchases as ​a hedge against geopolitical and policy risks," Westpac analysts ​wrote in a research note.

Spot silver fell 0.2% to $70.05 per ounce, platinum lost 0.7% to $1,792.05, and palladium was down ​0.8% at $1,341.23.