Gold prices were little changed in Asian trading on Wednesday, with spot gold edging down 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 slipped 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 stayed 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. CME Group’s FedWatch Tool shows traders assigning the highest probability to a hold, while market participants await comments from Fed Chair Kevin Warsh for clues on the timing of any future policy easing. Higher‑for‑longer 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. Saudi Arabia reported intercepting drones launched from Iraqi territory targeting oil facilities and blamed Iran‑backed militias for the attacks. These incidents ended a four‑day pause in direct military exchanges between Washington and Tehran and raised the risk of renewed escalation after a brief diplomatic opening.
Oil prices rebounded more than 4% on Wednesday after the latest exchange, with the LCO benchmark up 3.78%. ING analysts noted that higher oil prices amid a re‑escalation in the Middle East will weigh on gold in early‑morning trading, reigniting inflation concerns. Traders also looked ahead to U.S. economic data later in the 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.