Gold prices edged lower from record highs in Asian trading on Wednesday as investors turned cautious ahead of the U.S. Federal Reserve’s interest rate decision and policy outlook due later in the day.
Spot Gold was last down 0.4% at $3,673.38 an ounce by 02:40 ET (06:40 GMT), after hitting an all-time peak of $3,702.95 on Tuesday. U.S. Gold Futures for December slipped 0.4% to $3,710.77/oz.
Fed likely to cut rates later in the day The Fed is widely expected to deliver a 25 basis point cut, lowering the benchmark federal funds rate to a range of 4.00% to 4.25%.
Traders said such a move has been fully priced in, with attention now turning to the updated “dot plot” of policymakers’ rate projections and Chair Jerome
Powell’s comments at his press conference. Markets are watching closely for signals on the scale and pace of further cuts into 2026.
Lower interest rates typically boost gold by reducing its opportunity cost, weakening the dollar, and lifting its appeal as an inflation hedge and safe-haven asset.
“Continued concerns over the Fed’s independence will also remain the focus for the global market looking ahead,” ING analysts said in a note.
The US Dollar Index hovered near 11-week lows, adding some support to bullion.
“Gold prices have surged more than 40% so far this year amid Trump’s aggressive trade policy, conflicts in the Middle East and Ukraine, and central bank buying,” ING analysts noted. Metal markets subdued; silver drops 1.5% Other precious and industrial metals traded lower on Wednesday as investors squared positions ahead of the Fed decision.
Silver Futures dropped 1.5% to $42.26 per ounce, while Platinum Futures fell 0.3% to $1,400.60/oz.
Benchmark Copper Futures on the London Metal Exchange slipped 0.5% to $10,084.20 a ton, while U.S. Copper Futures declined 0.7% to $4.67 a pound.
