Gold Ticks Up Ahead of Fed Interest Rate Decision

Gold prices slightly recovered ahead of the Federal Reserve's interest rate decision on Wednesday. The metal had declined by 1.1% from the previous session and was trading around $4030 an ounce in early dealings.

The uncertainty surrounding the Fed's decision is unusually high, with nearly a one in three chance that interest rates will be raised by a quarter of a percentage point. Typically, higher borrowing costs are negative for gold, which does not yield a return.

Policymakers are likely to be divided between the June inflation reading and the recent spike in oil prices due to renewed tensions with Iran. Oil prices rebounded on Wednesday after a three-day drop amid ongoing Middle East tensions.