Gold held below $4,300 an ounce on Wednesday, trading near a six-week low as investors awaited the latest US Federal Reserve policy decision. The Fed is widely expected to raise interest rates by 25 basis points, its first hike in about three years, as policymakers move to rein in mounting inflationary pressures. Markets are also looking for signals on the likelihood of another rate increase later this year, with expectations building for a possible move in October or December.
In parallel, the Bank of Japan is anticipated to lift borrowing costs this week, while the Bank of England is expected to leave its policy stance unchanged.
Gold prices also came under pressure from surging energy costs, which are intensifying inflation concerns amid escalating supply disruptions in the Middle East. Rising bond yields further weighed on non-yielding metals, with the US 10-year Treasury yield climbing to its highest level since 2007.
