Doha:Gold prices experienced a decline on Wednesday, following a previous session’s increase of approximately 1 percent. This downturn comes as rising oil prices have heightened inflation concerns, prompting investors to anticipate the Federal Reserve’s policy decision later in the day for potential insights on the rate outlook.

According to Qatar News Agency, spot gold decreased by 0.7 percent to USD 4,030.20 per ounce. Additionally, U.S. gold futures for December delivery fell by 0.8 percent to USD 4,043.

The increase in oil prices, which climbed more than 1 percent on Wednesday, has led to expectations that the Federal Reserve will maintain higher interest rates for an extended period. This scenario raises the opportunity cost of holding non-yielding bullion. Investors are closely monitoring the Fed’s policy decision and the forthcoming Personal Consumption Expenditures data set to be released on Thursday, an essential indicator for the central bank as it aims for a 2 percent inflation rate.

In the broader metals market, spot silver decreased by 1 percent to USD 53.82 per ounce, platinum fell by 0.9 percent to USD 1,526.74, while palladium remained stable at USD 1,025.63.