Gold Slips Amid Fed Rate Hike Expectations and Rising Geopolitical Tensions

The price of gold on the Multi Commodity Exchange (MCX) declined by 0.21% to Rs 1,41,331 per 10 grams on Wednesday morning. In contrast, MCX silver futures for September delivery rose by 0.34% to Rs 2,16,577 per kilogram.

The market is closely watching the US Federal Reserve's monetary policy decision later in the day. Investors are expecting the Fed to leave interest rates unchanged at this meeting, which could support gold prices as lower interest rates reduce the opportunity cost of holding non-interest-bearing assets such as bullion.

Rising geopolitical tensions have also contributed to the uncertainty surrounding precious metal prices. The potential for inflationary pressures to increase due to higher energy prices has investors on edge, making today's policy announcement and commentary especially important for market participants.