Gold Prices Decline to Lowest Point in 4 Weeks

Gold prices dipped on Wednesday to their lowest level in nearly four weeks as investors awaited the Federal Reserve’s decision, which could shed light on the timeline for interest rate cuts.

In spot transactions, gold edged down 0.1 percent to $2,284.44 per ounce by 0436 GMT, marking its lowest level since April 5. The decline followed a 2 percent drop on Tuesday driven by a strengthening dollar and rising US Treasury bond yields.

Since reaching a record high of $2,431.29 on April 12, gold prices have fallen by more than $140.

US gold futures also declined by 0.4 percent to $2,293.10 an ounce.

All eyes are now on the US Central Bank’s monetary policy decision, expected at 1800 GMT, and subsequent statements by Chairman Jerome Powell. The Federal Reserve is widely anticipated to maintain the benchmark interest rate within the range of 5.25 to 5.5 percent.

While gold is traditionally seen as a hedge against inflation, high interest rates can diminish its appeal as it is a non-yielding asset.

In contrast, silver saw a slight uptick in spot transactions, rising 0.3 percent to $26.37 per ounce, while platinum edged up 0.2 percent to $935.80. Palladium, however, slipped 0.2 percent to $945.53 after hitting a two-month low in the previous session.