Fed Decision Looms: Gold Prices Steady Amid Rate Hopes

Gold prices remained relatively stable on Wednesday as investors awaited the Federal Reserve's policy decision and comments from Fed Chairman Kevin Warsh for clues on inflation and interest rate outlooks.

Spot gold was little changed at $4,029.08 per ounce by 0301 GMT, while U.S. gold futures for August delivery dipped 0.2 percent to $4,028.10.

The Fed's policy decision is due at 1800 GMT, while Kevin Warsh's comments are scheduled for 1830 GMT. Market expectations indicate a 70% chance that the central bank will hold rates steady and a 30% probability of a 25 basis points hike, according to the FedWatch tool.

Gold is seen as a hedge against inflation, and higher rates increase the opportunity cost of holding the non-yielding metal. On the geopolitical front, tensions between Iran and the U.S. remain high following an attempted attack by Tehran on Tuesday.