Gold Stays Above $4,300 as Markets Await Fed Rate Decision

Gold prices are hovering above $4,300 as investors await the Fed's rate decision, which could determine whether gold rises further or faces renewed selling pressure.

The US Federal Reserve begins its two-day policy meeting tonight and is scheduled to announce its interest rate decision on Wednesday. A 25-basis-point rate hike is now widely expected, but analysts say the bigger question for bullion investors is what the Fed signals about its next move.

Nirpendra Yadav, Senior Research Analyst at Bonanza Portfolio, believes that much of the expected hike is already reflected in gold prices. Stronger August inflation data, rising oil prices, a firmer US dollar, and higher Treasury yields have weighed on bullion.