By Anjana Anil
(Reuters) – Gold prices were steady on Wednesday as market participants were cautious ahead of the U.S. Federal Reserve’s interest rate decision due later in the day, while also pondering the implications of President Donald Trump’s trade policies.
Spot gold was unchanged at $2,762.89 per ounce as of 0930 GMT. U.S. gold futures added 0.1% to $2,771.50.
“Gold is faced with quite a lot of moving parts just now and hence prices are vacillating ; we saw a short-covering rally on the initial threat of tariffs which took us close to all time highs, which prompted some profit-taking at the top,” independent analyst Ross Norman said.
Last week, gold saw a 2.6% rise, closing in on its all-time-high levels recorded in October.
“Now gold has entered a period of range trading while it tries to work out the sum total and effect of the Fed meeting, possible rate cuts, and a possible correction in equity markets on the DeepSeek news,” Norman said.
On Monday, a sell off in technology stocks driven by Chinese AI model DeepSeek sparked a rush to liquidate bullion to counter losses.
With the Fed’s first policy meeting of the year wrapping up later in the day, investors are laser-focused on any signals on the possible path of interest rates, along with Chair Jerome Powell’s speech.
The central bank is widely expected to keep rates steady after 100 basis points of easing last year.
Trump has called for lower interest rates, conflicting with the Fed’s design of setting interest rate policy independently.
Elsewhere, Trump still plans to make good on his promise to issue tariffs on Canada and Mexico. His policies are widely seen as inflationary, which could pressure the Fed to keep rates higher to curb price pressures.
Spot silver firmed 0.1% to $30.43 per ounce, platinum gained 0.4% to $945.25 and palladium dropped 0.2% to $953.00.
(Reporting by Anjana Anil in Bengaluru; Editing by Sharon Singleton)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.