Gold Prices Hold Steady Ahead of Fed Rate Decision

Gold prices remained largely unchanged on Wednesday as investors awaited the US Federal Reserve's policy decision and comments from Fed Chairman Kevin Warsh for clues on inflation and interest rate outlooks.

The scenario that could lead to a potential reversal of gold's recent bearish bias is if the Fed adopts a less hawkish tone, according to Kelvin Wong, a senior market analyst at OANDA.

Market expectations indicate a 70% chance that the central bank will hold rates steady and a 30% probability of a 25 basis points hike, while markets are pricing in a 76% chance of an increase in September.

The Bank of England is also expected to keep its rates unchanged on Thursday, while the Bank of Japan may make no changes on Friday. The geopolitical tensions between the US and Iran have not had any significant impact on gold prices so far.