Will gold prices increase as Fed decision looms?

Gold prices remained unchanged in international markets as the US Federal Reserve's interest rate decision awaited. The precious metal fell to its lowest level in more than a month on Monday, but did not adjust on Tuesday.

At 11:00 a.m. local time in Bangladesh, spot gold was trading at $4,302.13 per ounce. Gold prices fell to their lowest level since Monday, August 7. And US gold futures fell 0.2 percent to $4,341.70 per ounce.

The Fed will announce its interest rate decision on Wednesday after a two-day meeting. Markets are widely expecting the central bank to raise interest rates by 25 basis points to a range of 3.75 percent to 4 percent.

However, analysts say Fed Chairman Kevin Warsh's comments could be more important than interest rate hikes. If he signals a consistent rate hike, it could put pressure on gold prices. Conversely, if he signals a slow and moderate pace of policy tightening, it could be positive for gold.

Gold is generally in high demand as a safe haven against inflation and geopolitical risks. However, rising interest rates also increase the opportunity cost of investing in gold, which pays no interest. As a result, gold's appeal may diminish in a high-interest environment.

Among precious metals, silver was at $63.25 per ounce, while platinum rose 0.7 percent to $1,770.81 and palladium fell 0.4 percent to $1,288.25.