US Fed meeting 2025, May 7 -- Gold prices declined on Wednesday due to reduced demand for safe-haven assets, driven by growing optimism over U.S.-China trade negotiations, ahead of the Federal Reserve's policy announcement later in the day.

As of 0628 GMT, spot gold was down 1.2% at $3,389.37 per ounce, after rising nearly 3% on Tuesday.

Investor focus is on the upcoming Federal Open Market Committee (FOMC) meeting, where the Federal Reserve is anticipated to maintain current interest rates, with Chair Jerome Powell set to speak afterward.

Markets are estimating in a total of 80 basis points in rate cuts this year, beginning in July.

"With the US Fed meeting tomorrow, markets are eager for indications regarding rate cuts or monetary p...