WASHINGTON (dpa-AFX) - Gold edged down slightly on Wednesday, after having climbed to a new record high at $3,040 per ounce earlier.
Spot gold slipped 0.2 percent to $3,028.71 in early European trade while U.S. gold futures were down 0.1 percent at $3,037.50.
Today's decline is primarily attributed to profit booking as rising Middle East tensions and trade uncertainties due to U.S. President Donald Trump's tariff plans continue to fuel demand for the safe-haven asset.
Geopolitical tensions intensified, with Iran-backed Houthi rebels claiming their fourth attack on a U.S. warship in the Red Sea within 72 hours and Israel saying ceasefire negotiations with Hamas will only take place 'under fire'.
Elsewhere, Russian President Vladimir Putin has ordered a 30-day pause on strikes on Ukraine's energy sites but insists peace depends on the 'complete cessation' of Western military and intelligence aid.
Global ratings agency Fitch has lowered its global growth forecast and warned that U.S. President Donald Trump's reciprocal tariffs will push up inflation and delay Fed rate cuts.
Investors eagerly await the Federal Reserve's monetary policy announcement later in the day for further direction.
The U.S. central bank may keep rate steady, but the accompanying statement as well as the latest projections may provide clues about the outlook for rates in 2025.
Traders are pricing in 58 basis points of easing this year from the Fed, with the first cut fully priced in for July, according to LSEG data.
Earlier today, the Bank of Japan left rates steady and signaled concern about the impact of trade tensions on the global economy.
Amid economic headwinds both at home and abroad, the Bank of England is widely expected to hold interest rates when it meets on Thursday.
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