Gold prices edged lower on Wednesday as the U.S. dollar remained steady and investors awaited the U.S. Federal Reserve’s monetary policy decision for clues on inflation and the future path of interest rates.
Spot gold fell 0.1% to $4,021.87 per ounce as of 0052 GMT, while U.S. gold futures for August delivery declined 0.4% to $4,021.70 per ounce.
The Federal Reserve is due to conclude its two-day policy meeting on Wednesday, with markets widely expecting the U.S. central bank to leave interest rates unchanged.
The Bank of England and the Bank of Japan are also expected to keep interest rates unchanged on Thursday and Friday, respectively, while continuing to warn about inflationary pressures.
The U.S. dollar held near its highest level in a month, making dollar-denominated gold more expensive for holders of other currencies.
On Tuesday, the U.S. Central Command said Iran had launched several ballistic missiles in an attempted surprise attack on U.S. forces stationed in the Middle East, adding that the missiles were successfully intercepted.
Meanwhile, Oman has presented Iran with a Gulf-backed proposal for managing the Strait of Hormuz that includes voluntary transit fees for ships using the strategic waterway, according to a Gulf source and a Western diplomat who spoke to Reuters.
Among other precious metals, spot silver rose 0.1% to $57.20 per ounce, platinum gained 0.1% to $1,605.96 per ounce, while palladium slipped 0.1% to $1,268.35 per ounce.
Source: Reuters
