Gold Holds Steady Close to 4-Week Low

Gold prices steadied on Wednesday, hovering near a four-week low as investors awaited a decision from the US Federal Reserve that could offer insights into the timing of interest rate cuts.

Spot gold settled at $2,285.69 per ounce by 0829 GMT, after hitting its lowest level since April 5 earlier in the session. Prices dipped by up to two percent on Tuesday, driven by a stronger dollar and rising US Treasury bond yields.

The precious metal shed over $140 after reaching a record high of $2,431.29 on April 12.

US gold futures slipped 0.3 percent to $2,296.30 per ounce.

All eyes are now on the US Central Bank’s monetary policy decision at 1800 GMT and subsequent remarks from Fed Chair Jerome Powell.

The Federal Reserve is anticipated to maintain the benchmark interest rate within the range of 5.25 to 5.5 percent.

While gold is traditionally viewed as a hedge against inflation, the allure of holding this non-yielding asset diminishes in the face of high interest rates.

In other precious metals, silver climbed 0.6 percent to $26.43 per ounce in spot transactions, while platinum rose 0.6 percent to $939. Palladium declined by 0.7 percent to $940.75, following its lowest level in about two months in the previous session.