Gold prices hovered above the $2000 level on Wednesday, as investors awaited the Federal Reserve's decision on interest rates scheduled to be announced later today. Gold steadied in the spot market at $2016.29 per ounce, after rising over 1% in the previous session. U.S. gold futures increased by 0.1% to $2026.10. The Federal Reserve's interest rate decision is anticipated, with widespread expectations of a 25 basis point increase. Gold is typically seen as a hedge during times of rising inflation and economic turmoil, but higher interest rates tend to reduce the appeal of non-yielding metal.
Regarding other precious metals, silver in the spot market fell by 0.2% to $25.33 per ounce, platinum dropped by 0.4% to $1061.53, while palladium rose by 0.4% to $1434.62.
