Gold prices remained steady, holding recent gains as investors await the Federal Reserve’s policy decision later today. The key focus is whether the Fed will cut its interest rates by 25 or 50 basis points. A larger cut of 50 basis points could further support gold, a non-yielding asset, as the dollar declines. The market will also monitor Fed Chair Powell’s comments and the Dot Plot projections for clues on future rate cuts.

A 25 basis point cut might have a short-term negative impact on gold and offer some support to the dollar. However, the overall outlook for gold remains positive, as global central banks are beginning to ease monetary policies. Market participants are also paying attention to the Bank of England’s decision on Thursday and the Bank of Japan’s update on Friday for additional insights.

Apart from monetary policy, ongoing geopolitical tensions in the Middle East and U.S. political uncertainty ahead of the November election could continue to support the precious metal. Strong demand from central banks and increased gold ETF inflows are also contributing to gold’s upward momentum.