Khaberni - Gold prices fell for the third consecutive session on Wednesday; as inflation fears related to the ongoing conflict in the Middle East cast a shadow over monetary policy expectations, while focus also was on the decision of the Federal Reserve (the US central bank) regarding the interest rate later today.
The spot gold price dropped by one percent to $4550.39 per ounce after recording its lowest level in a month.
US futures for gold also declined by 1% to $4563.30.
Gold is known as a hedge against inflation, but the appeal of this non-yielding metal diminishes if central banks raise interest rates.
Donald Trump discussed with American oil companies ways to mitigate the impacts of a potential American blockade for several months on Iranian ports, while the American president urged Tehran to sign an agreement. Tehran warned of "unprecedented military action" in response to the ongoing American blockade.
The war led to rising oil prices, with Brent crude reaching its highest level in a month amidst ongoing worries about supply disruptions, while US treasury yields also rose.
The Federal Reserve's monetary policy decision is scheduled to be issued at 2:00 PM Eastern Time (18:00 GMT), with expectations that interest rates will remain steady. Federal Reserve Chairman Jerome Powell is scheduled to hold a press conference half an hour after the meeting ends, which might be his last meeting as chairman.
Wyckoff said "Today's meeting might be quiet; as no change in interest rates is expected. Of course, any surprises from Powell would be sensitive for the market."
The World Gold Council stated on Wednesday that global demand for gold increased 2% year-on-year in the first quarter of 2026, as an increase in purchases of bullion and gold coins, along with a three percent increase in central banks' purchases, offset a 23 percent decrease in demand for jewelry.
As for other precious metals, silver dropped 1.8% to $71.75 per ounce in spot transactions, platinum decreased by 2.8% to $1886.53, and palladium fell 0.1% to $1458.75.
