Gold slumps below $4000 and Oil rallies

Chris Beauchamp IG

An action-packed evening lies ahead for global markets, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Markets on edge ahead of Fed decision

The atmosphere is febrile in markets this afternoon ahead of a decision from the Fed, big tech earnings and the likelihood of fresh US strikes on Iran. The tension can be felt across the globe, exemplified by gold slipping through $4000 and a brutal reversal for the Dow, previously a safe haven in US indices amidst the rout in global chip stocks. The reasons to hunker down and sit out August in cash are manifold.

Oil surges as new US strikes loom

A return to the US-Iran conflict seems baked in regardless of anything else that happens tonight. As a result oil prices have staged a huge reversal from yesterday’s lows, piling on the pressure ahead of the Fed decision. The stakes for markets could not be higher right now.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

GBP/USD flirts with multi-week lows near 1.3280

GBP/USD trades mildly on the defensive on Wednesday, challenging the area of multi-week troughs around 1.3280. Indeed, Cable struggles to gain traction as the Greenback remains resilient ahead of the Fed gathering later in the day. Moving forward, the British Pound should remain under the microscope in light of the BoE meeting on Thursday.

EUR/USD stays offered below 1.1400 pre-Fed

EUR/USD trades in a narrow range below 1.1400 on Wednesday. The pair’s slight decline comes as the US Dollar benefits from risk aversion amid the deepening crisis in the Middle East. In the meantime, investors remain exclusively focused on the imminent FOMC event and the press conference by Chair Warsh.

Gold: The $4,000 mark holds the downside ahead of the Fed

Gold remains on the back foot on Wednesday, navigating the area just above the psychological $4,000 mark per troy ounce amid the US Dollar’s marginal advance. In the meantime, escalating tensions in the US-Iran conflict weigh on the precious metal, while investors await the FOMC event later in the day.

Bitcoin slips below support, Ethereum and XRP flash bearish signals

Bitcoin, Ethereum and Ripple remain under pressure on Wednesday after a mild correction earlier this week. BTC slips below a key support zone, and ETH is testing a key resistance zone. Meanwhile, XRP is drifting toward the psychologically important $1.00 support level.

Federal Reserve set to hold interest rates steady, yet a hike can’t be ruled out

The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday, another pivotal meeting for markets to gauge the stance of policymakers as they assess how rising crude Oil prices could impact the inflation outlook.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.