Gold Prices Steady as Markets Await Fed Decision Amid US Trade Uncertainty

Gold prices held largely steady in Asian trading on Wednesday, with investors cautious ahead of the U.S. Federal Reserve’s policy announcement and ongoing trade developments. Spot gold slipped 0.1% to $3,323.66 an ounce, while gold futures eased 0.1% to $3,378.62 per ounce as of 02:18 ET (06:18 GMT).

The yellow metal had gained slightly in the previous session, supported by safe-haven demand amid uncertainty over the August 1 tariff deadline set by U.S. President Donald Trump. However, recent progress in trade talks has pressured bullion prices in recent weeks, reducing demand for defensive assets.

A U.S.–EU framework agreement unveiled last weekend lowered tariffs on most European goods to 15% from the previously threatened 30%, easing fears of a trade war escalation. The development strengthened the U.S. dollar, which remained firm midweek and weighed on gold by making it more expensive for international buyers.

Market focus now turns to the Fed’s two-day policy meeting, expected to conclude with rates held at 4.25%–4.50%. Investors will closely watch the central bank’s commentary for signals on future policy shifts, particularly the possibility of a rate cut in September. Additional U.S. economic data, including PCE inflation and labor market reports, are due later this week and could influence gold’s trajectory.

Other precious metals traded lower, with platinum futures down 0.3% at $1,415.05 and silver futures slipping 0.4% to $38.15. Copper also declined, with London benchmark futures dropping 0.3% to $9,781.45 per ton and U.S. copper futures falling 0.5% to $5.64 per pound amid tariff concerns following Chile’s push for exemptions on U.S. metal duties.