Gold prices remained steady during Asian trading on Wednesday as investors refrained from making significant bets ahead of the U.S. Federal Reserve’s policy decision, while closely monitoring developments in the Israel-Iran conflict.
In Dubai, gold rates showed minor fluctuations, with 24-carat gold priced at AED407.11, while 22-carat gold was valued at AED373.69. Additionally, 21-carat gold was set at AED356.97, and 18-carat gold stood at AED306.83.Â
 Spot gold was steady at $3,388.04 an ounce, as of 03:41 GMT (currently trading above $3,393.6). U.S. gold futures showed little movement, remaining at $3,406.50 (currently trading above $3,413.2).
“Gold fluctuated as investors tracked the escalation of risk in the Middle East. Tepid U.S. reports on retail sales, housing, and industrial output bolstered the case for the Fed to cut rates later this year,” analysts at ANZ noted in a report, as cited by Reuters.
On Wednesday, Iran and Israel launched new missile strikes at each other, marking the sixth day of air conflict between the two long-time adversaries, despite a call from U.S. President Donald Trump for Iran’s unconditional surrender. The U.S. is also deploying additional fighter aircraft to the Middle East and extending the presence of other warplanes, according to three U.S. officials who spoke to Reuters.
Data released on Tuesday indicated that U.S. retail sales fell more than anticipated in May, primarily due to a decline in motor vehicle purchases as the rush to avoid potential tariff-related price increases subsided.
Fed expected to maintain interest rates
Meanwhile, the U.S. central bank is widely expected to keep interest rates steady at the conclusion of its policy meeting later today. Attention will also be directed toward the Fed‘s updated economic projections and the benchmark interest rate.
“We maintain our forecast that structurally strong central bank buying and the boost to ETF holdings from Fed cuts will raise the gold price to $3,700 per ounce by the end of 2025 and $4,000 by mid-2026,” Goldman Sachs stated in a note.
In other news, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported that its holdings increased by 0.43 percent to 945.94 tonnes on Tuesday. Meanwhile, spot silver dipped 0.1 percent to $37.22 per ounce, platinum rose 0.3 percent to $1,266.04, and palladium gained 0.3 percent to $1,054.63.
