Gold Pulls Back Slightly Ahead of Fed Decision

Gold prices slipped from record highs in Asian trading on Wednesday as investors turned cautious ahead of the U.S. Federal Reserve’s policy meeting later in the day.

• Spot Gold fell 0.4% to $3,673.38/oz by 02:40 ET (06:40 GMT), after touching a new all-time high of $3,702.95/oz on Tuesday.
• Gold Futures (Dec) were down 0.4% at $3,710.77/oz.

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Fed in Focus: 25 bps Cut Expected

Markets are fully pricing in a 25 basis point rate cut, which would lower the federal funds rate to 4.00%-4.25%.

• Attention will be on the dot plot projections and Powell’s comments for signals on the pace and scale of cuts through 2026.
• Lower rates typically support gold by reducing the opportunity cost of holding non-yielding assets, weighing on the dollar, and reinforcing its role as a safe-haven hedge.
• The U.S. Dollar Index stayed near an 11-week low, offering additional support to bullion.

So far in 2025, gold has gained over 40%, fueled by trade tensions, geopolitical conflicts (Middle East & Ukraine), and strong central bank buying.

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Other Metals Under Pressure

Broader precious and industrial metals were weaker as traders squared positions ahead of the Fed:

• Silver Futures fell 1.5% to $42.26/oz.
• Platinum Futures slipped 0.3% to $1,400.60/oz.
• Copper Futures (LME) dipped 0.5% to $10,084.20/ton, while U.S. Copper Futures lost 0.7% to $4.67/lb.