Doha: Gold prices declined on Wednesday as investors weighed expectations that the US Federal Reserve will maintain a cautious monetary policy stance, amid rising oil prices and mounting inflationary pressures. Gold prices experienced a dip, with spot gold falling 0.4% to $4,986.79 per ounce, while US gold futures for April delivery declined 0.3% to $4,990.70.

According to Qatar News Agency, market sentiment remains pressured by expectations that interest rates will stay elevated for longer, reducing the appeal of gold as a non-yielding asset. Higher borrowing costs typically strengthen yields on income-generating instruments, increasing the opportunity cost of holding bullion.

Rising energy prices have further fueled inflation concerns, particularly as the US-Israeli conflict with Iran enters its third week, driving up transportation and production costs globally. The geopolitical tensions have added to the economic uncertainty, impacting market dynamics and investor decisions.

The US Federal Reserve is widely expected to keep interest rates unchanged for the second consecutive meeting when it announces its policy decision later today, with investors closely monitoring signals on the future path of monetary tightening. The anticipation surrounding the Fed's announcement is creating a cautious atmosphere in the market.

Despite its traditional role as a hedge against inflation and geopolitical uncertainty, gold has come under pressure from the prospect of prolonged high interest rates. Investors are assessing the long-term impact on gold's value amid these economic conditions.

In other precious metals, spot silver rose 0.2% to $79.42 per ounce, while platinum fell 1.6% to $2,089.55 and palladium declined 1% to $1,584.75. The mixed movement in these metals reflects the broader uncertainty and varied investor responses to current market conditions.