Gold Stuck Above $4,000 Amid Fed Interest-Rate Decision Tensions

Gold prices remained above $4,000 on Wednesday as traders watched the Federal Reserve's interest-rate decision closely. The Fed is widely expected to leave interest rates unchanged, but a rate hike cannot be ruled out due to rising energy-driven inflation risks.

The US Dollar Index (DXY) supported the Greenback amid Fed rate-hike expectations and tensions in the Middle East, while oil prices rebounded after recent attacks on US forces and Saudi Oil facilities.

Despite the potential for a rate hike, gold may struggle to recover if policymakers maintain a hawkish stance and signal that higher borrowing costs could come soon.