Gold prices were little changed on Wednesday as market participants awaited the US interest rate verdict, while the spotlight was also on President Donald Trump’s trade policies amid fresh tariff threats.

Spot gold held its ground at $2,762.49 per ounce, as of 0317 GMT.

US gold futures added 0.1% to $2,769.90.

Last week, prices were trading near record-high levels but they fell over 1% on Monday as investors rushed to liquidate bullion to offset losses triggered by a sharp pullback in technology stocks, spurred by DeepSeek’s low-cost, low-power AI model.

“It’s always a bit of a concern when a market fails to break through previous highs, but such a move is still in play,” said Kyle Rodda, financial market analyst, Capital.com.

“Gold is catching a bid because of a desire to hedge against deficits, debt, and de-dollarisation.”

Trump still plans to make good on his promise to issue tariffs on Canada and Mexico on Saturday, a White House spokeswoman told reporters on Tuesday.

The Federal Reserve’s first policy meeting of the year concludes later in the day.

The central bank is widely expected to keep rates steady after 100 basis points of easing from September to December.

Investors will also be on the lookout for policymakers’ reaction to Trump’s demand to lower interest rates.

Gold holds steady as traders focus on Fed

However, Trump’s policies are perceived as inflationary, which could lead the Fed to keep rates higher for longer.

Gold typically acts as a safe-haven asset during times of uncertainty and trade wars. However, higher interest rates could dampen its appeal as it yields no interest.

Top bullion consumer China’s markets remain closed for the Lunar New Year holidays.

Among other metals, spot silver was flat at $30.38 per ounce, platinum steadied at $941 and palladium dropped 0.8% to $947.27.