Gold edges up to $4,324 as Fed decision awaited

Spot gold rose 0.75 per cent to $4,323.88 an ounce at 10:23 am PST on Wednesday, according to Mettis Global. Investors are focused on the Federal Reserve's upcoming decision, where a rate increase is already largely priced in. CME FedWatch data gives a 92.4 per cent chance of a 25 basis point or larger hike, and Fed Chair Kevin Warsh will hold a press briefing once the decision is out.

Crude oil retreated after US inventory stockpiles rose unexpectedly, though traders also weighed possible supply disruption after Saudi Arabia halted loading at its Yanbu port. Gold is generally seen as a shield against inflation, yet higher interest rates usually weaken its appeal because holding a non-yielding asset becomes more expensive. Silver gained 1.5 per cent to $64.60 an ounce, platinum rose 0.7 per cent to $1,788.25 and palladium climbed 1.6 per cent to $1,309.80.

A separate item, citing CNBC, said a Saudi-led coalition spokesperson in Yemen confirmed that air defences shot down a Houthi drone south of Mecca before it could reach restricted airspace over the city. The episode unfolded while conflict in the wider Middle East was intensifying.