Gold Rebounds as Investors Weigh Fed Hike Against Oil, Bond, and Geopolitical Risks

Gold prices rebounded on Wednesday as oil prices eased and investors positioned for the Federal Reserve's interest-rate decision. The Fed has a 92.7% probability of at least a 25-basis-point rate hike, according to CME FedWatch.

Markets were pricing in another rate increase, but the immediate direction of gold will depend less on this widely anticipated move than on the Fed's assessment of what comes next.

A hawkish Fed could pull gold down, while any soft messaging may ease bets on hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East.