Gold fell more than 1% on Wednesday as the Federal reserve held interest rates steady and gave little indication of when cuts might occur, while strong U.S. economic data further dimmed the appeal of the zero-yield asset.

Gold prices declined by 1% on Wednesday as solid US economic data reinforced expectations of the Federal Reserve holding interest rates steady for now, dimming the appeal of the safe-haven metal. By midday ET, spot gold traded at $3,292.75 per ounce, falling below the $3,300-an-ounce level for the first time in a month.

Melbourne – Gold could hit US$4,000 an ounce by the end of 2026 as the Federal Reserve lowers interest rates to cushion the US economy, the US dollar drops and central banks keep expanding holdings, according to Fidelity International.