Gold Prices Stabilize Amid Fed Rate Announcement Uncertainty

Gold prices have steadied around $4,288 an ounce amid uncertainty surrounding the Federal Reserve's interest rate announcement. Markets are largely positioned for a 25-basis-point cut to bring the benchmark rate down to a 3.75-4% band.

The Fed is set to conclude its two-day policy meeting and deliver its decision at 1800 GMT on Wednesday, with investors awaiting hints on where borrowing costs will head next.

Bullion tends to become less attractive when borrowing costs rise, as higher rates make it more costly to hold an asset that pays no yield. This comes as U.S. consumer prices rose at a faster clip in August, while core inflation registered its biggest jump in four months.