- US Fed interest rate decision due at 1800 GMT
- Most Fed policymakers expected to signal a hold on rates this year
- Traders see 59% chance of US rate hike in December
June 17 (Reuters) - Gold prices held steady near a one-week high on Wednesday, as details from a U.S.-Iran agreement emerged and investors awaited Federal Reserve Chair Kevin Warsh's first policy meeting decision.
Spot gold was flat at $4,328.67 per ounce, as of 0747 GMT, after touching a one-week high of $4,370.82 on Monday.
U.S. gold futures for August delivery were down 0.1% at $4,348.40.
President Donald Trump said the agreement with Iran would rule out Tehran developing nuclear weapons, while a U.S. official said Iran would be allowed to sell oil.
Oil prices hovered near a three-month low on expectations of Iranian supply, easing inflation concerns.
"The rally (in gold) is losing some steam as all eyes turn to the monetary policy announcement from the Fed (at 1800 GMT)," said Ilya Spivak, head of global macro at Tastylive.
"Traders still seem unsure about how he (Warsh) will reconcile a hawkish record, rising inflation, and pressure from a White House demanding a dovish pivot."
Most Fed policymakers now feel they will need to keep U.S. short-term borrowing costs on hold all year, projections due out later in the day are expected to show, with a small number seen pencilling in a rate hike to stop a spike in inflation from getting entrenched in the economy.
Traders see a 59% chance of a U.S. rate hike in December, down from about 70% last week before the U.S.-Iran peace deal announcement, according to the CME FedWatch tool. FEDWATCH
Gold tends to lose appeal when rates are high, as it does not yield interest.
"Over the longer term, structural support (for gold) is expected to persist, driven by ongoing Asian demand and continued central bank purchases as a hedge against geopolitical and policy risks," Westpac analysts wrote in a research note.
Spot silver fell 0.1% to $70.12 per ounce, platinum lost 1% to $1,786.25, and palladium was down 0.2% at $1,348.64.
Reporting by Noel John in Bengaluru; Editing by Rashmi Aich, Sherry Jacob-Phillips, Eileen Soreng and Harikrishnan Nair
Source: Reuters