Gold price prediction today: Gold rises, but will the upside be limited?

Gold price prediction today: Gold prices have staged a recovery as geopolitical tensions show signs of abating, but the gains are likely to be limited ahead of the US Federal Reserve’s policy this week, says Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd.Gold prices started the week on a positive note, as easing geopolitical tensions and a weaker US dollar improve sentiment towards bullion, although gains may remain capped ahead of the Federal Reserve’s policy decision. Markets welcomed the temporary pause in hostilities between the United States and Iran after both countries refrained from further military escalation over the weekend, reducing fears of immediate supply disruptions through the Strait of Hormuz and the Red Sea.The de-escalation triggered a sharp decline of more than 5% in crude oil prices, easing concerns over energy-driven inflation and reducing pressure on global central banks to maintain restrictive monetary policies.