Gold little changed ahead of Fed decision, platinum hits more than 4-year high
Gold prices were little changed on Wednesday as investors waited for the Federal Reserve's policy decision and comments from Chair Jerome Powell, while platinum surged to a more than four-year peak.
Spot gold was down 0.1% to $3,386.10 an ounce by 1013 a.m. EDT (1413 GMT).
U.S. gold futures fell 0.1% to $3,403.50.
Markets are trading sideways right now as everyone is waiting for Fed's decision and the developments in the Middle East, Marex analyst Edward Meir said.
In the Middle East, Iran's Supreme Leader Ayatollah Ali Khamenei rejected U.S. President Donald Trump's demand for unconditional surrender, as Iranians jammed the highways out of Tehran fleeing from intensified Israeli airstrikes.
Meanwhile, the Fed is expected to keep interest rates unchanged when it announces its policy decision, due at 0200 p.m. EDT (1800 GMT). Investors will also closely monitor Powell's speech for clues on the central bank's future course of action.
Trump knocked Powell for what he expected would be a decision not to lower interest rates and said the man he put in the role during his last term had done a poor job.
Gold's appeal is increased by geopolitical tensions and by low interest rates. But prices lost momentum after hitting a session high of $3,451.04 on Monday, nearing a record peak set in April.
Goldman Sachs said in a note that interest has shifted to other precious metals as investors seek catch-up opportunities.
"In our view, platinum and silver's recent rallies are primarily speculative and lack fundamental support," it added.
Spot silver shed 0.8% to $36.95 per ounce, after reaching its highest level since February 2012 earlier.
Platinum rose 3.1% to $1,302.17, highest since February 2021.
"The high price of gold has shrunk Chinese gold jewellery demand and there are high hopes that platinum will be the substitute. If May demand remains strong or increases, platinum will push higher; if April was a one-off expect a sharp retracement," said Tai Wong, an independent metals trader.
Elsewhere, palladium was flat at $1,052.25.
Source : Reuters
