Gold and silver prices rebounded ahead of the Federal Reserve's policy announcement, even as rising bond yields and energy inflation continue to weigh on the broader market outlook.
Spot gold rebounded 0.8% to $4,326.44 ahead of the Fed decision, breaking a two-day losing streak.
Silver advanced 1.4% to $64.59 an ounce, tracking gold's gains.
Platinum rose 0.7% to $1,792.43, supported by the broader precious metals rebound.
The US Dollar Index was little changed at 99.57, showing muted reaction ahead of the Fed.
Spot gold climbed 0.8% to $4,326.44 on Wednesday, snapping a two-day losing streak as investors braced for a widely expected Federal Reserve interest rate hike. While the precious metal recovers, it remains pressured by 10-year Treasury yields hitting 5.04% and ongoing uncertainty regarding Saudi oil pipeline disruptions.
Gold does not generate interest income, so when the Federal Reserve raises rates, the opportunity cost of holding the metal increases compared to interest-bearing assets like Treasury bonds.
Analysts suggest gold needs to break back above its 200-day moving average of $4,539 to end its recent downtrend; otherwise, it faces potential support testing near $4,200.