Gold Snaps Three-Day Drop as Traders Focus on Fed Rate Decision

Gold staged a rebound after a three-day selloff, with dip-buyers returning ahead of an expected interest-rate cut by the Federal Reserve.

Bullion rose above $4,000 an ounce on Wednesday, having lost more than 4% during the previous three sessions. Investors are penciling in a 25-basis-point reduction, although Fed Chair Jerome Powell is unlikely to offer much guidance. Lower borrowing costs tend to benefit non-interest bearing precious metals.

Gold has retreated sharply following a torrid rally that drove prices to a record above $4,380 an ounce last week. Technical indicators had shown the ascent had run too far, too fast — ...