Gold Loses Ground as Saudi Refinery Strike Claims Lift Crude, Silver Pulls Back

Gold and silver prices fell in early U.S. trading on Wednesday. Renewed tensions around Iran and its allies lifted crude oil and heightened inflation worries ahead of the Federal Reserve's rate decision. Gold gave back some of Tuesday's gains while silver faced pressure from industrial demand concerns and high borrowing costs.

Spot gold traded near 4,054.60 dollars per ounce, down 6.36 dollars or 0.16 percent. Silver slipped to 54.202 dollars, losing 0.195 dollars or 0.40 percent. Traders expect a Fed pause Wednesday with an 84 percent chance of another rate hike by December. High yields, a firm dollar and tightening expectations continue to curb buying interest in gold.

The FOMC ends its two-day meeting at 2 p.m. EDT followed by Chair Kevin Warsh's press conference at 2:30 p.m. Rates are likely to stay at 3.75–4.00 percent. Tensions in the Strait of Hormuz rose after Houthi claims of a missile strike on Saudi Arabia's Ras Tanura refinery with 550,000 barrels per day capacity. This pushed WTI to 101.37 dollars and Brent to 115.59 dollars per barrel.