Gold holds steady ahead of US Fed decision

Gold prices were steady on Wednesday as market participants were cautious ahead of the US Federal Reserve's interest rate decision due later in the day, while also pondering the implications of President Donald Trump's trade policies, reports Reuters. Spot gold eased 0.1 per cent to $2,759.49 per ounce by 1127 GMT while US gold futures were flat at $2,768.70.

"Gold is faced with quite a lot of moving parts just now and hence prices are vacillating; we saw a short-covering rally on the initial threat of tariffs which took us close to all time highs, which prompted some profit-taking at the top," independent analyst Ross Norman said.

Last week, gold saw a 2.6 per cent rise, closing in on its all-time-high levels recorded in October.

"Now gold has entered a period of range trading while it tries to work out the sum total and effect of the Fed meeting, possible rate cuts, and a possible correction in equity markets on the DeepSeek news," Norman said.