Gold Edges Higher Ahead of Expected Fed Rate Hike

Gold prices rose in early U.S. trading on Wednesday as investors awaited a Federal Reserve interest rate decision, expected to be the first hike since July 2023.

The Fed has priced in a 90% to 93% chance of a 25-basis-point rate rise, but historical data suggests gold investors have little cause for concern over a single hike.

Markets have largely absorbed the effect of this expected move, and what will determine gold's next step is not the decision itself, but the forward-looking signals from the central bank on its policy path.