Gold prices reversed lower in Asian trading on Wednesday as investors turned cautious ahead of the US Federal Reserve’s policy announcement later in the day.
Spot gold was down at $3,664.28 per ounce by 09:35 GMT after hitting a record $3,702.95 on Tuesday. US gold futures for December delivery also slipped to $3,702.77.
The Fed is expected to cut rates by 25 basis points, lowering its benchmark range to 4.00–4.25%. Traders say this move is already priced in, with focus now shifting to policymakers’ updated rate projections and Chair Jerome Powell’s press conference for signals on how aggressively the Fed might ease into 2026.
Gold has climbed over 40% this year on central bank buying, global tensions and Trump’s trade stance, but the latest pullback shows investors are wary of the Fed’s next move, the focus remains firmly on the Fed’s decision and Powell’s forward guidance, with any hint of a less-dovish tone risking a deeper sell-off.