Gold Drops Amid Caution Ahead of U.S. Federal Reserve Monetary Policy Decision

Gold prices fell on Wednesday as investors awaited the monetary policy decision from the Federal Reserve later today. Concerns regarding the conflict in the Middle East had previously propelled gold, a safe haven asset, above $2,000 per ounce last month. By 0351 GMT, spot gold had decreased 0.2 percent to $1,978.36 per ounce, while U.S. gold futures dropped 0.4 percent to $1,987.00. Spot gold recorded a 7.3 percent jump in October, reaching a high of $2,009.29 last week, the highest level in over five months. Christopher Wong, executive director and foreign exchange market expert at the Bank of England, noted that the market had pushed prices above $2,000 but they subsequently fell back, attempting to rise again without much success. He added that the main factor in the market is the Middle East conflict and the potential for escalation with the involvement of other parties in the war. Markets are now awaiting the outcome of the Federal Reserve's monetary policy meeting, which will conclude later today, followed by the U.S. monthly jobs report on Friday. Regarding other precious metals, silver decreased by 1 percent to $22.662 per ounce, platinum fell 0.6 percent to $927.77, while palladium rose 0.5 percent to $1,120.91.