Fed interest rate, Middle East in the foreground

Gold prices rose slightly on Wednesday, after recovering from the trough of a week achieved in the previous session, due to expectations of a reduction in oil prices. interest by the US Federal Reserve and escalating tensions in the Middle East.

Spot gold was up 0.2% at $ 1,420.40 on ounce at 0:28 am GMT, after reaching its lowest level since July 17th at $ 1,413.80 when from the previous session.

US gold futures remained stable at $ 1,420.80 per ounce.

Futures contracts remain 100% expected for a 25 basis point rate cut by the Fed next week, and have even taken into account an 18% chance of a 50 basis point cut.

The European Central Bank is expected to report easier monetary policy at its meeting this week, while the Turkish central bank is expected to cut 250 basis points on 25 July.

A US Navy vessel took the defense last week against a second Iranian UAV in the Strait of Hormuz, but did not see the drone enter the water, announced Tuesday. 39, US Army.

At the same time, the dollar index hit a five-week high on Wednesday, after gains of nearly 0.5% the day before, while the euro fell to its lowest level in two month.

US Trade Representative Robert Lighthizer and senior US officials will visit Shanghai on Monday for face-to-face business meetings with Chinese officials, Bloomberg said on Tuesday, citing unidentified sources.

Asian stocks advanced on Wednesday, reflecting signs of progress in the Sino-US trade saga.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings had fallen 0.25 percent from Monday to 823.13 tons on Tuesday.