Gold prices displayed a lack of clear upward momentum as investors await the Federal Reserve's decision on interest rates.

On July 27, COMEX gold experienced a high open but declined through the session, settling at $4,065.1 per ounce, a decrease of 0.29%. Across the Pacific, the SHFE gold night session traded sideways around the 900 yuan mark but failed to break through, closing at 891.12 yuan per gram, down 0.18%.

Market data showed that U.S. core capital goods orders (excluding aircraft and non-defense capital goods) rose 0.9% month-over-month in June, surpassing expectations. This indicates that corporate investment in equipment remains robust, with the May figure revised upward to 1.9%.

On the geopolitical front, the United States and Iran are engaged in "very deep negotiations." Officials expressed patience and a willingness to reach a deal, given ample time, but also stated that military action against Iran could be resumed if diplomatic efforts fail. This pause in the U.S.-Iran conflict has put downward pressure on oil prices. However, gold's price reaction has been muted, likely because the market anticipates a hawkish tone from the Fed's July meeting, given persistent inflation.

In the short term, the strategy should be defensive to navigate the high-volatility environment. Investors should wait for the FOMC outcome to be released. Given the unclear market direction, it is prudent to maintain a light position for observation. On the geopolitical side, caution is needed regarding any sudden news from the U.S.-Iran talks, as any development could trigger instant, sharp volatility in both oil and gold prices. The Fed's decision itself may be a "sell the news" event, but attention should be paid to whether the accompanying language is more hawkish or dovish than expected.

Sources: Wind, Everbright Futures Research Institute