Gold prices remained stable on Wednesday, as investors awaited the Federal Reserve’s decision on interest rates. The market has largely priced in a 25 basis point rate cut, but the spotlight is on the Fed’s long-term rate outlook, which could have a significant impact on precious metal prices.

Key Factors Impacting Gold

Fed’s Rate Outlook:Analysts are particularly focused on the Fed’s future stance on rates, especially for 2025. The expectation of slower rate cuts could potentially support gold, a non-yielding asset, as a hedge against inflation.

Market Sentiment:Gold prices tend to benefit from economic uncertainty and expectations of looser monetary policy, as investors flock to safe-haven assets. The U.S. dollar’s performance has been another key influence, with its strength offsetting some of the appeal of gold.

Relevant Insights

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To understand broader market movements, including interest rate changes, the Economics Calendar API provides timely data and forecasts.