Gold prices ease as markets await Federal Reserve update

Gold fell 0.4% to $4,574.26 per ounce Wednesday as rising energy costs stoked inflation fears ahead of Federal Reserve commentary. The metal hit its lowest level since April 2 after Brent crude climbed above $112 per barrel following reports of a tightened U.S. blockade. Investors are weighing whether the Fed will maintain high interest rates to combat energy-driven inflation, which reduces the appeal of non-yielding bullion.

### Oil Prices Pressure Bullion Appeal Brent crude rose above $112 a barrel as the United States reportedly plans to extend its blockade of ports in Iran. Ilya Spivak, head of global macro at Tastylive, said costlier energy translates into inflation, steering the Fed in a more hawkish direction. High interest rates typically weigh on bullion because it pays no interest or dividends.