Gold Slips Ahead of Fed Decision as Oil and Yields Keep Rate-Hike Bets Elevated

Gold prices slipped on Wednesday as investors weighed the risk of stubborn inflation and elevated oil prices ahead of the Federal Reserve's policy decision.

The Fed is expected to raise interest rates for the first time since 2023, with markets pricing in a roughly 92% chance of a rate hike.

Higher borrowing costs could weigh on gold, as bullion pays no interest and makes income-generating assets more attractive.

Oil prices steadied after rising for two straight sessions, while uncertainty over the duration of Saudi Arabia's East-West pipeline shutdown kept energy markets on edge.

The 10-year Treasury yield briefly reached 5.04%, its highest level since 2007, adding to inflation pressures and weighing on gold.