Gold Prices Flat as Investors Await Fed Rate Decision

Gold prices remained subdued on Wednesday as investors awaited the US Federal Reserve's policy decision. A rate hike is widely expected, with traders pricing in a 92.4 per cent chance of at least a 25-basis-point increase.

The spot gold price was down 0.1 per cent at $4,288.48 per ounce, while US gold futures for December delivery also fell by the same margin to $4,328.10. Market analyst Frank Walbaum noted that a hawkish Fed could further pull gold down, while any soft messaging may ease bets on hikes and help the metal recover.

Gold's price movement was influenced by the strong dollar and elevated oil prices, which add to price pressures. The dollar held onto recent gains, hovering above its previous levels, making greenback-priced gold more expensive for holders of other currencies.