Gold prices saw a slight uptick on Wednesday as buyers took advantage of lower prices after a drop to a three-week low in the prior session. Investors are ready for the Federal Reserve’s rate decision later today. Spot gold rose by 0.7% to $3,977.49 per ounce as of 0114, after hitting its lowest level since October 7 on Tuesday. Gold futures in the U.S. for December delivery rose by 0.2%, hitting $3,991.70 per ounce.

The Federal Reserve is expected to lower interest rates at the end of its policy meeting on that day, with investors closely watching for any forward-looking comments from Fed Chair Jerome Powell. The European Central Bank is expected to keep its interest rates steady during the upcoming policy meeting on Thursday. Attention will focus on any developments in negotiations between Washington and Beijing as U.S. President Donald Trump gets ready to meet with his Chinese counterpart, Xi Jinping, in South Korea on Thursday.

Gold, not generating interest, thrives in settings marked by low interest rates and times of economic uncertainty. Gold prices have increased around 52% this year, reaching a record high of $4,381.21 on October 20, influenced by geopolitical and economic uncertainties, anticipated rate cuts, and continued buying by central banks. Meanwhile, the U.S. dollar stayed near a one-week low against major currencies as the market anticipates a widely expected Fed rate cut.

U.S. private payrolls experienced an increase of 14,250 jobs on average during the four-week period ending on October 11, based on the initial weekly preliminary estimate. In other markets, spot silver increased by 0.7% to $47.36 per ounce, platinum saw a rise of 0.4% to $1,593, and palladium advanced by 1.7% to $1,417.22.