Gold prices edged lower on Wednesday, giving back a portion of their recent advance as traders prepared for an anticipated Federal Reserve rate cut later in the day.
At 08:15 ET (13:15 GMT), spot gold slipped 0.3% to $4,196.15 per ounce, while March gold futures also fell 0.3% to $4,224.30 per ounce.
Gold softens before crucial Fed announcement
Although gold remains supported by expectations of imminent U.S. interest rate cuts—typically bullish for non-yielding assets—the metal traded slightly weaker in early Wednesday dealings.
The Fed is widely projected to lower rates by 25 basis points when its meeting concludes later today, but investors will pay close attention to the updated economic outlook, especially amid lingering inflation pressures and limited fresh data due to the prolonged U.S. government shutdown.
Markets are also watching developments around the selection of the Fed’s next chair. Reports suggest President Donald Trump will begin his final round of interviews this week to choose a successor to Jerome Powell, whose term ends in May 2026.
Kevin Hassett, a senior White House economic adviser and the leading candidate for the job, told the WSJ CEO Council on Tuesday that there is “plenty of room” to lower interest rates further, though he cautioned that rising inflation could shift the calculation.
In wider precious and industrial metals trading, spot platinum fell 2% to $1,674.70 per ounce after briefly hitting a near two-week high. Meanwhile, benchmark copper futures on the London Metal Exchange added 1.4% to $11,627 per metric ton.
Silver hits all-time high amid supply concerns and safe-haven demand
Silver has delivered standout performance in recent sessions, notching a fresh record of $62.018 per ounce earlier Wednesday after soaring more than 100% so far in 2025.
The metal, often viewed as a lower-priced safe haven compared to gold, has been swept up in speculative buying amid forecasts for tighter supply and accelerating demand in the year ahead.
Its designation by the U.S. government as a critical mineral has intensified interest, as Washington seeks to secure additional sources to mitigate potential shortages. Silver plays a vital role in electrical components and has significant industrial uses.
The metal’s remarkable rally has also been supported by traders seeking haven exposure at far cheaper levels than gold, even as bullion prices themselves have surged this year.