Gold Prices Steady Ahead of Fed's Rate Decision

Gold prices remained stable on Wednesday as investors awaited the US Federal Reserve's policy decision. The FedWatch tool indicates a 70% chance that the central bank will hold rates steady and a 30% probability of a 25 basis points hike, while markets price in a 76% chance of an increase in September.

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 Commerzbank lowered its year-end gold price forecast to $4,500 per troy ounce and said it expects silver to reach $67 per troy ounce by the end of the year.