Gold prices were largely unchanged on Wednesday as investors stayed cautious ahead of the US Federal Reserve’s policy decision and ongoing Middle East tensions. Elevated oil prices, driven by supply concerns and disruptions in the Strait of Hormuz, continued to support inflation expectations, typically favourable for gold.
However, expectations of steady interest rates limited upside in bullion prices. Market participants are closely watching the Fed’s forward guidance for cues on future rate cuts. Meanwhile, geopolitical risks, including escalating tensions between Iran and Israel, kept safe-haven demand intact. Silver declined slightly, while platinum and palladium traded with limited movement in a volatile global environment.