Gold Prices Hold Steady Ahead of Fed Decision

Gold prices held steady near $4,301 an ounce on Wednesday as investors waited for the Federal Reserve's decision on interest rates. The Fed is set to announce its decision at 1800 GMT, with markets leaning towards a quarter-point hike to a 3.75%-4.00% range.

While a rate hike itself may not be significant, what traders are looking for is Chair Kevin Warsh's signals on the path forward. If he talks up a 'meeting-by-meeting' tightening approach, investors could start penciling in higher rates for longer.

This shift tends to push Treasury yields up, which can lift real yields, the yields after inflation adjustment. Higher real yields make gold less attractive since bullion doesn't pay interest.