FX.co ★ Gold Rises as Oil and Bond Yields Lose Momentum

Gold rose back above $4,300 an ounce on Wednesday, snapping a two-session losing streak as earlier gains in oil prices and bond yields faded ahead of the latest US Federal Reserve policy announcement. Oil retreated from multi-month highs after an unexpected build in US crude inventories, though ongoing supply disruptions in the Middle East continued to lend support to prices. At the same time, global bond yields stabilized following their recent climb, with investors shifting focus to a series of major central bank decisions scheduled this week. The Fed is widely expected to lift interest rates by 25 basis points, its first increase in roughly three years, as policymakers seek to rein in inflationary pressures. Markets are also watching closely for guidance on the likelihood of another hike later this year, with expectations coalescing around a possible move in October or December. The Bank of Japan is likewise projected to raise borrowing costs this week, while the Bank of England is expected to keep rates on hold.