Gold prices fall toward $4,000 ahead of Fed decision

Gold prices fell toward the $4,000-per-ounce level Wednesday as investors awaited the US Federal Reserve’s monetary policy decision and assessed continuing geopolitical tensions in the Middle East.

The precious metal traded at around $4,010 per ounce as of 1420GMT, down 0.6% day-on-day, remaining close to its lowest level since November 2025.

The Fed is widely expected to leave interest rates unchanged, though money markets priced in roughly a 36% probability of a 25-basis-point increase Wednesday and about an 80% chance o a hike in September.

Higher interest rates tend to weigh on non-yielding assets such as gold by increasing the opportunity cost of holding them.

The Bank of England and the Bank of Japan are also expected to keep their policy rates unchanged this week while maintaining cautious positions on inflation.

Commerzbank lowered its year-end gold price forecast to $4,500 per ounce, while projecting that silver could reach $67 per ounce.

Geopolitical risks remained in focus after Tehran rejected an Omani proposal for joint regional management of the Strait of Hormuz, reducing expectations of an easing in regional tensions.

Oil prices also rose nearly 7% amid renewed attacks in the Middle East and US President Donald Trump’s warning of a forceful response to an Iranian attack on US forces in the region.