Gold holds above $4,000 ahead of Fed decision

Spot gold traded at approximately $4,062 in early morning trading, while U.S. gold futures climbed to around $4,076. The precious metal, which gained 1.1% in the previous session, showed signs of recovery following recent sell-offs in technology stocks and volatility across global financial markets. However, prices came under renewed downward pressure later in the day.

Investors are focused on today's Fed interest rate decision and signals regarding the future direction of monetary policy. While the central bank is expected to keep interest rates unchanged, the possibility of another rate hike in December remains a potential source of pressure on gold prices. Physical gold demand from China and bargain buying are providing support to the market. U.S. Personal Consumption Expenditures (PCE) inflation data, scheduled for release on Thursday, will also be closely monitored for its potential impact on gold's short-term direction.