NEW YORK: Gold prices fell for a third straight session on Wednesday, as inflation worries tied to the ongoing conflict in the Middle East clouded the outlook for monetary policy, while the spotlight was also on the US Federal Reserve’s rate decision later in the day.
Spot gold was down 1.1percent at USD4,543.57 per ounce, as of 8:55 a.m. EDT (1255 GMT), a one-month low. US gold futures fell 1.1percent to USD4,555.70. “We are seeing some positioning ahead of this afternoon’s FOMC decision. Rising US Treasury yields and higher crude oil prices, which is causing inflation worries, have also been bearish for the gold market,” said Jim Wyckoff, senior analyst at Kitco Metals.
Gold is known as an inflation hedge, but the non-yielding metal’s appeal dims if central banks raise interest rates. US President Donald Trump urged Iran to ‘get smart soon’ and sign a deal, following days of deadlock in efforts to end the conflict in the Middle East and a media report that the US would extend its blockade of Iran’s ports.
The war has sent oil prices soaring, with Brent hitting a one-month high as concerns about supply disruptions persisted, while US Treasury yields ticked higher.
The Federal Reserve’s policy decision is due at 2 p.m. EDT (1800 GMT), with expectations that rates will be held steady. Fed Chair Jerome Powell is scheduled to hold a press conference half an hour later, in what could be his final meeting as head of the Fed.
“Today’s meeting may be uneventful because no rate changes are expected. Of course, any surprises coming from Powell would be market sensitive,” said Wyckoff.
Elsewhere, the World Gold Council said global gold demand rose 2 percent year-on-year in the first quarter of 2026 as a surge in purchases of gold bars and coins, as well as a 3percent growth in buying by central banks, outweighed a 23percent decline in jewellery demand.
Among other metals, spot silver fell 1.6 percent to USD71.95 per ounce, platinum fell 2.1percent to USD1,900.11, and palladium was down 1.6percent at USD1,436.86.—Reuters