Gold firms to two-week peak on softer dollar, Fed outlook in focus

Gold prices hit a two-week high, with spot gold gaining 1.7% to $4,145.24 per ounce and US gold futures settling 1.9% higher at $4,151.90, supported by a softer US dollar and technical buying. Oil prices rose to a near six-week high after Iran-aligned Houthis threatened tankers in the Red Sea, adding geopolitical risk premium. Investors are awaiting the FOMC interest-rate decision next week, with markets pricing in about a 76% chance of a rate hike in September.