Gold prices inched higher on Wednesday, helped by a slight pullback in the dollar as investors awaited the Federal Reserve’s policy decision and comments that could offer more cues on the timing of the U.S. central bank’s next moves.
Spot gold was up 0.2% at $3,331.03 per ounce, as of 0828 GMT. U.S. gold futures edged 0.1% higher to $3,328.30.
The dollar index eased 0.1% after hitting more than a one-month high on Tuesday, making gold less expensive for holders of other currencies.
“There are a range of features that taken together are keeping gold prices moribund. From a geopolitical standpoint we appear to be making progress in the tariff negotiations, but no-one is really prepared to commit one way or the other,” StoneX analyst Rhona O’Connell said.
Negotiations between China and the U.S. will be on the watch after officials agreed to seek an extension of their 90-day tariff truce, following two days of what both sides described as constructive talks in Stockholm.
Trade agreements with Japan last week and the European union over the weekend eased investors jitters and lifted risk sentiment in the market this week.
Meanwhile, the Fed is widely expected to keep rates steady on Wednesday, despite U.S. President Donald Trump’s persistent calls to lower them. Markets will be paying attention to Fed Chair Jerome Powell’s remarks for more cues on the rate path.
“The markets are pricing in two cuts before year-end which is probably too benign. The Fed will not give in to political pressure, but it will be interesting to see whether the vote today is unanimous,” O’Connell said.
Gold tends to do well in a low-interest rate environment.
Elsewhere, spot silver fell 0.4% to $38.04 per ounce, platinum slipped 1% to $1,381.69 and palladium was down 0.5% to $1,252.40.
