Gold Holds Steady Ahead of Fed Rate Decision Amid Global Tensions

Gold prices remained steady on Wednesday as investors waited for the US Federal Reserve's policy decision and comments from Fed Chairman Kevin Warsh. The move came ahead of the central bank's 1800 GMT announcement, with a 68% chance that it will keep rates steady and a 32% probability of a 25 basis points hike, according to the FedWatch tool.

Kelvin Wong, a senior market analyst at OANDA, said 'Gold is very much connected to today's FOMC meeting... The scenario that may see a potential reversal of the recent bearish bias in gold prices will be the Fed turning to a less hawkish rhetoric.'

The US military intercepted multiple ballistic missiles launched by Iran towards US forces in the Middle East on Tuesday, which Washington cast as 'an attempted surprise attack' by Tehran. Oil prices rose supported by shrinking US crude inventories.