Gold stabilizes near its lowest levels in 10 days as the Federal Reserve's decision is awaited.

Gold prices stabilized near their lowest levels in 10 days during trading on Wednesday, as markets prepare for the upcoming interest rate decision and the quarterly economic outlook report from the U.S. Federal Reserve later in the day, ahead of a press conference on monetary policy by Fed Chairman Jerome Powell.

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In terms of trading, spot gold prices remained close to their lowest levels in 10 days, with the yellow metal priced at $2,643.94 per ounce, reflecting a slight decline of 0.07%. Meanwhile, futures prices for gold decreased marginally by 0.11% to record $2,659.10 per ounce.

What Affected Gold Movements Today?

Investors shifted to a cautious stance as they awaited the interest rate decision from the U.S. Federal Reserve later today, along with any hints the bank might provide in its quarterly forecasts or during Powell's remarks at the press conference, which will give more signs about potential interest rate movements in 2025.

On the other hand, U.S. Treasury yields have risen, adding further pressure on gold, as investors turned to increase their holdings in safe-haven Treasury yields at the expense of the yellow metal, with the 10-year U.S. Treasury yield rising by 0.68% to record 4.414%.

The weakness in gold today comes amid the marginal rise in the U.S. dollar, driven by increased demand for the currency due to a heightened interest in U.S. Treasury bonds. The dollar index – which measures the performance of the U.S. dollar against a basket of 6 major currencies – rose by 0.1% to 107.28 points, which has increased the cost of holding gold for investors holding other currencies, apart from the greenback.