Gold prices dipped slightly on Wednesday, hovering just above the $4,000 mark as traders awaited the US Federal Reserve’s interest-rate decision. Bullion fell as much as 0.5%, nearing $4,040 an ounce, after gaining 1.1% in the previous session. The decline came amid heightened geopolitical tensions, with oil prices rising as traders monitored a deadlocked Israeli election.
The Wall Street Journal reported that the US has warned several Persian Gulf nations to prepare for a potential military campaign against Iran. This development added to the uncertainty in global markets, influencing gold’s movement. The precious metal has been a focal point for investors seeking safe-haven assets amid volatile conditions.