Gold Holds Steady Near $4,600 As Fed Rate Decision Looms

Gold price (XAU/USD) holds steady near $4,600 during the early Asian session on Wednesday. The precious metal steadies as traders await a key Federal Reserve (Fed) interest rate decision later on Wednesday. 

The US central bank is anticipated to maintain the benchmark federal funds rate in the 3.50% to 3.75% range, marking the third consecutive meeting without a change. This meeting may be the final one for Jerome Powell, whose successor, while Kevin Warsh, is nearing confirmation.

Traders will take more cues from the press conference on how policymakers are interpreting the impact of higher energy costs and whether this alters their longer-term outlook on interest rates. Any hawkish remarks from the Federal Reserve (Fed) policymakers could lift the US Dollar (USD) and weigh on the USD-denominated commodity price. 

Additionally, ongoing US–Iran tensions and the closure of the Strait of Hormuz could have fueled inflation fears and raised the bar for cutting rates. Gold is often used amid geopolitical uncertainty, but does not yield interest, making it less attractive when interest rates are high.