PRECIOUS-Gold inches lower as investors monitor Fed decision, Israel-Iran conflict
By Anushree Mukherjee
June 18 (Reuters) - Gold prices edged lower on Wednesday as investors held back on making significant bets ahead of the U.S. Federal Reserve’s policy decision while keeping a close watch on developments in the Israel-Iran conflict.
Spot gold XAU= fell 0.1% to $3,385.79 an ounce as of 1130 GMT. U.S. gold futures GCcv1 fell 0.1% to $3,403.80.
Attention is on the Fed's two-day policy meeting, which concludes later on Wednesday, with the central bank widely expected to keep interest rates steady. Investors will be watching for cues on future cuts from Fed Chair Jerome Powell.
"Traders are holding back ahead of the Federal Reserve’s interest rate decision later today, while a slight uptick in risk appetite in equity markets is weighing on gold," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
S&P 500 futures ESc1 added 0.1%, while Nasdaq futures NQc1 also gained about 0.1%.
Meanwhile, the conflict between Israel and Iran continues to fuel geopolitical instability, which is keeping a floor under the market, Evangelista added.
Iran's Supreme Leader Ayatollah Ali Khamenei said in a statement read by a television presenter on Wednesday that his country will not accept U.S. President Donald Trump's call for an unconditional surrender.
Thousands of people were fleeing Tehran after Trump said they should leave the capital. The U.S. is deploying more fighter aircraft to the Middle East and extending the deployment of other warplanes, three U.S. officials told Reuters.
"While gold prices could feasibly fall from current levels over the next six months...strong demand from central banks and Chinese investors will limit any price falls and keep gold above the $3,000 per ounce level," said Hamad Hussain, assistant climate and commodities economist at Capital Economics.
Elsewhere, spot silver XAG= fell 0.2% to $37.18 per ounce, platinum XPT= rose 1.5% to $1,283.97, while palladium XPD= was steady at $1,051.40.
Spot gold price in USD per oz
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