Gold prices edged lower during Asian deals on Wednesday, slipping beneath the key US$5,000 per ounce level as investors positioned for a potentially hawkish outcome from the Federal Reserve’s policy meeting.
By 3:15 pm AEDT, spot gold was down 0.3% at $4,992.04 per ounce, hovering near its weakest level in a month.
The precious metal has remained under pressure in recent sessions, consolidating around the psychologically significant $5,000 mark as markets brace for signals from the Fed on its 2026 policy trajectory.
Expectations are firmly centred on the central bank holding its benchmark interest rate steady within a range of 3.50% to 3.75%.
However, investor focus is on forward guidance, particularly the so-called dot plot and commentary from Fed Chair Jerome Powell.
According to the CME Group FedWatch Tool, markets are pricing in a 98.9% probability that rates will remain unchanged at the current level.
Fundamentally, support for gold remains underpinned by persistent geopolitical and inflationary pressures. The ongoing conflict in the Middle East has continued to drive oil prices higher, reinforcing concerns that elevated energy costs could sustain inflation and keep monetary policy tighter for longer.
At the same time, the downside in gold has been partially cushioned by a modest pullback in the U.S. dollar, with the U.S. dollar index retreating from recent ten-month highs this week.
Traders are also monitoring U.S. producer price index figures set for release later in the session for further clues on inflation trends.
