Gold Sees Brief Respite Amid Hawkish Fed Expectations

Gold prices rose on Wednesday as oil prices eased, while market participants looked ahead to the US Federal Reserve's policy decision.

The Fed is widely expected to raise interest rates, with a rate hike now priced in at 92.7%, according to CME FedWatch.

Frank Walbaum, a market analyst at Naga.com, noted that 'a hawkish Fed could pull gold down, while any soft messaging may ease bets on hikes and help the metal recover.'

Oil prices fell after an unexpected buildup in US crude inventories, while investors assessed supply risks following Saudi Arabia's suspension of oil loading at its Yanbu port.