Gold traded near $5,000 per ounce on Wednesday, hovering close to a one‑month low as investors weighed the impact of volatile oil prices on inflation ahead of the Federal Reserve’s policy decision. With the Fed widely expected to keep interest rates unchanged later today, market participants are focused on the central bank’s guidance regarding rising energy costs and signs of a cooling labor market. Other major central banks, including the ECB, BoE, and BoJ, are likewise expected to leave their policy settings unchanged.
Geopolitical tensions remained elevated, with the US and Israel carrying out overnight strikes as Iran confirmed that national security chief Ali Larijani had been killed, after earlier Israeli claims he had died in an airstrike. Tehran continued its attacks on energy infrastructure across the Persian Gulf, while shipping through the Strait of Hormuz stayed heavily disrupted. Despite its recent pullback, gold remains up roughly 16% year‑to‑date.
