Gold prices ease from record highs as Fed decision nears
Gold prices dipped slightly in Asian trading on Wednesday, pulling back from record levels as investors grew cautious ahead of the U.S. Federal Reserve’s interest rate decision later in the day.
Spot gold slipped 0.4% to $3,673.38 per ounce by 02:40 ET (06:40 GMT), after touching an all-time high of $3,702.95 on Tuesday. U.S. gold futures for December delivery also fell 0.4% to $3,710.77 per ounce.
Fed policy outlook in focus
The Fed is widely expected to cut rates by 25 basis points, lowering the federal funds rate to between 4.00% and 4.25%. While the move is already priced in, traders are awaiting the updated dot plot of policymakers’ projections and remarks from Chair Jerome Powell for clarity on how quickly cuts may extend into 2026.
Lower rates usually benefit gold by reducing its opportunity cost, pressuring the U.S. dollar, and reinforcing its appeal as both an inflation hedge and a safe-haven asset.
“Concerns over the Fed’s independence will remain key for global markets,” ING analysts said in a note.
The U.S. Dollar Index stayed near 11-week lows, offering additional support to bullion. Gold has already gained more than 40% this year, driven by Donald Trump’s trade policies, conflicts in Ukraine and the Middle East, and increased central bank gold buying.
Precious and industrial metals weaker
Other metals also fell on Wednesday as investors trimmed positions ahead of the Fed’s policy announcement.
- Silver futures dropped 1.5% to $42.26 per ounce.
- Platinum futures eased 0.3% to $1,400.60 per ounce.
- Copper futures declined 0.5% on the London Metal Exchange to $10,084.20 a ton, while U.S. copper contracts fell 0.7% to $4.67 per pound.
