Gold was little changed—as investors weighed the Federal Reserve’s expected rate-cut trajectory against inflationary risks stemming from the war in the Middle East.
In early trading, bullion hovered near $5,000 an ounce, remaining within a narrow range throughout the week. While the Fed is widely expected to keep interest rates unchanged at its policy meeting later on Wednesday, market participants will closely scrutinize the central bank’s assessment of rising energy prices and a softening U.S. labor market. Oil held on to its gains, as the conflict has now entered its third week.
The United States and Israel continued strikes overnight, with Iran confirming the death of national security chief Ali Larijani. Israel had earlier said he was killed in an airstrike. Tehran, in turn, pressed on with attacks against energy infrastructure across Persian Gulf states, while the Strait of Hormuz remains effectively closed to shipping.
Spot gold edged down 0.1% to $5,001.79 an ounce as of 6:23 AM in Singapore. Silver fell 0.2% to $79.16. Platinum and palladium also posted marginal declines.