Gold prices slipped toward $4,030 an ounce on Wednesday, hovering near a three-month low, as the US dollar held at a two-week high following the Federal Reserve’s decision to keep interest rates unchanged. A sharp rise in oil prices intensified inflation concerns, adding further pressure on the precious metal.
The FOMC voted 10–2 to leave rates steady, reiterating its commitment to bringing inflation under control but stopping short of signaling whether another rate increase could come in December. At the same time, oil prices climbed after an attack on a Saudi Arabian refinery heightened fears of potential supply disruptions. Additional support for oil came from an Axios report that the US and Israel could launch large-scale strikes on Iran unless a last-minute agreement is reached.
According to the CME FedWatch Tool, markets continue to widely expect the Federal Reserve to deliver a second interest rate hike this year in December.