Gold pulls back from two-week high as Fed meeting, oil prices in focus

Gold retreated from a two-week high on Thursday ahead of next week's U.S. Federal Reserve policy meeting, with traders awaiting guidance on the path of interest rates. Spot gold settled at $4,132.01 per ounce, after touching $4,165.87 in the previous session — its highest level since July 7. August U.S. gold futures fell 0.4% to $4,134.60 per ounce. The pullback coincided with a surge in oil prices to a six-week high, driven by continued U.S. strikes on Iran and escalating risks to Middle East oil shipments. In that environment, the U.S. dollar edged down 0.1%, while the two-year Treasury yield climbed to its highest level in 17 months on concerns that rising energy prices could add to inflationary pressure. Markets widely expect the Fed to keep rates unchanged at its upcoming meeting, while pricing in the possibility of at least one rate hike before year-end. Elsewhere in precious metals, spot silver rose to $59.90 per ounce, platinum gained 0.7% to $1,656.24, and palladium added 0.8% to $1,301.25.