Gold gains in global marker

Gold prices ticked up ​on Wednesday as oil prices eased, while market participants looked ahead ‌to the U.S. Federal Reserve's policy decision, with a rate hike largely priced in.

Spot gold was up 0.8% at $4,328.39 per ounce, as of 0310 GMT, after scaling a more ​than one-month low on Monday. U.S. gold futures for December delivery were ​down 0.9% at $4,369.50.

"A hawkish Fed could pull gold down, while any ⁠soft messaging may ease bets on hikes and help the metal recover. ​Traders are also monitoring oil prices and developments in the Middle East," said ​Frank Walbaum, a market analyst at trading platform Naga.com.

Gold is often seen as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding bullion.

Oil prices fell after ​an unexpected build in U.S. crude inventories, while investors assessed supply risks after ​Saudi Arabia suspended oil loading at its Yanbu port.

Traders are pricing in a 92.4% chance ‌of ⁠at least a 25-basis-point U.S. rate hike later in the day, according to CME FedWatch. The policy decision will be followed by a press conference from Fed Chair Kevin Warsh.

On the geopolitical front, Saudi Arabia air defences destroyed a Houthi ​drone south of Mecca ​before it entered ⁠prohibited airspace over the holy city, a spokesperson for the Saudi-led military coalition in Yemen said, as fighting spreads ​in the Middle East.

Commerzbank said it was somewhat surprising that ​gold prices ⁠had not come under greater pressure so far. It noted that gold's resilience may be supported by persistent fiscal concerns, reflected in elevated long-term government bond yields, as ⁠well ​as a recent rise in U.S. political risks.

Among ​other metals, spot silver rose 1.5% to $64.60 per ounce, platinum edged 0.7% higher to $1,788.25, while palladium gained 1.6% ​to $1,309.80.