Fed Rate Decision Looms as Gold Prices Hold Steady Amid Mideast Tensions

Gold prices wavered ahead of the US Federal Reserve's interest rate decision on Wednesday. The Fed is expected to make a finely balanced decision, considering June's lower-than-expected inflation reading and the recent rise in oil prices due to escalating tensions in the Middle East.

Bullion traded near $4,030 an ounce, holding steady after declining 1.1% in the previous session. Ahmad Assiri, a strategist at Pepperstone Group Ltd, said that policymakers' decision 'could prove pivotal for the next leg in gold.'

Assiri warned that if the Fed delivers a more hawkish-than-expected message, reinforcing higher rates or signaling greater concern over inflation, gold is likely to come under pressure.