Global gold prices remained above the psychological level of US$4,000 per troy ounce during Wednesday’s (October 28) trading session, as buying interest emerged following a price decline ahead of the Federal Reserve’s interest rate decision. Spot gold traded around US$4,060.73 per troy ounce, following a gain of approximately 1.1% in the previous session.
The recovery in gold was bolstered by physical buyers and investors taking advantage of the price correction seen over the last few days. This activity helped cushion the downside after gold had briefly dipped below US$4,000, reaching its lowest level since mid-July.
Demand from China has also provided support. Household interest in gold has grown over the past two months, driven by lower prices and the waning appeal of the domestic stock market. This has helped strengthen physical demand at a time when global market volatility remains high.
Investor focus is now squarely on the Federal Reserve’s decision. The Fed is expected to keep interest rates unchanged at this meeting—a scenario generally favorable for gold, as the precious metal does not yield any interest. However, the market still anticipates the possibility of a rate hike before the end of the year, making the future direction of policy a key point of interest.
Beyond the Fed, gold’s movement is also influenced by relatively stable oil prices, developments surrounding the Israeli elections, and improving sentiment toward technology and artificial intelligence stocks. Should the Federal Reserve signal a more dovish stance, gold could sustain its gains. Conversely, a hawkish tone could strengthen the US dollar and exert downward pressure on gold prices.