Gold prices were little changed in Asian trading on Wednesday, with spot gold slipping 0.1% to $4,025.38 an ounce by 23:32 ET (03:32 GMT) and U.S. gold futures falling 0.4% to $4,023.10. The yellow metal had dropped more than 1% in the previous session as a stronger U.S. dollar weighed on its price. The U.S. Dollar Index ticked 0.1% lower but remained near a one‑month high, making gold more expensive for overseas buyers.
The Federal Reserve is widely expected to leave interest rates unchanged at the conclusion of its two‑day meeting later on Wednesday. According to CME Group’s FedWatch Tool, traders see the central bank keeping rates on hold, and markets are focusing on Fed Chair Kevin Warsh’s comments for clues on the timing of any future policy easing. Higher‑for‑longer interest rates typically increase the opportunity cost of holding the non‑yielding gold asset.
Geopolitical developments added to market caution: Iran launched ballistic missiles at U.S. forces in the Middle East, all of which were intercepted according to U.S. Central Command. Iraq’s Iran‑aligned Popular Mobilization Forces said U.S. and Saudi forces carried out airstrikes on its headquarters across several Iraqi provinces, while Saudi Arabia reported intercepting drones launched from Iraqi territory targeting oil facilities and blamed Iran‑backed militias for the attacks. These events ended a four‑day pause in direct military exchanges between Washington and Tehran and raised the risk of renewed escalation.
Oil prices rebounded more than 4% on Wednesday after the latest exchange, a move that ING analysts said would weigh on gold in early‑morning trading and reignite inflation concerns. Traders are also looking ahead to U.S. economic data later this week, including the personal consumption expenditures price index and the July payrolls report, for further insight into the outlook for interest rates.
Among other precious metals, silver rose 0.6% to $57.49 per ounce, while platinum slipped 0.5% to $1,598.60 per ounce. Benchmark copper futures on the London Metal Exchange edged down 0.3% to $13,643.33 a ton, and U.S. copper futures also fell 0.3% to $6.32 a pound.