Gold slips as investors await Fed policy decision

South Korea's KOSPI gained over 1% in early trading after sinking more than 10% to a three-month low on Tuesday. (EPA Images pic)SINGAPORE: Asian stocks rebounded on Wednesday after a brutal selloff a day earlier as anxiety about valuations, rising competition and AI spending rocked markets ahead of crucial earnings from big tech firms and a Federal Reserve policy decision.Oil prices jumped in early trading after fresh attacks in the Middle East shattered the relative calm of recent days in the US-Iran war as investors fret about the impact of depleting supplies on prices and global rates.Asian chipmakers have been at the epicentre of this year's AI-driven rally and, more recently, investor concerns about its staying power, sparking sharp market swings. But strong earnings from SK Hynix helped calm some of those fears.South Korea's KOSPI gained over 1% in early trading after sinking more than 10% to a three-month low on Tuesday.

Shares of SK Hynix rose 2% after the chipmaker posted a more than sixfold increase in quarterly operating profit but missed lofty expectations."The broader backdrop remains one of rotation rather than outright risk aversion," said Chris Weston, head of research at Pepperstone.MSCI's broadest index of Asia-Pacific shares outside Japan was 0.8% higher after shedding 3.6% on Tuesday and remains on course for a monthly drop of 6.6%. Japan's Nikkei gained 1% but is bracing for a 10% drop in July.Earnings from "Magnificent Seven" members Microsoft and Meta later in the day will be a key test of the AI trade, particularly after Alphabet and Tesla spooked investors last week with negative cash flow reports.Nick Twidale, chief market strategist at ATFX Global in Sydney, expects another tough day for equities in the Asian day with SK Hynix earnings exacerbating the uncertainty, while the news from the Middle East is also expected to weigh."I think the risk of a Fed hike will also concern investors, so rather than a more usual pre-Fed quieter market, I’ve got a feeling it could be a volatile day ahead."Nasdaq futures NQc1 were choppy in Asian hours and were last up 0.5% while European futures STXEc1 pointed to a higher open.Brent futures LCOc1 jumped 3% to US$86.80 per barrel while US West Texas Intermediate (WTI) crude CLc1 rose over 3% to US$81.95 after U.S. Central Command said Iran had launched multiple ballistic missiles that were success…

Gold prices in Pakistan fell on Tuesday, tracking losses in the international market, amid a firmer US dollar and investor caution ahead of the Federal Reserve's policy decision. In the local market, the price of 24-carat gold dipped by Rs4,300 to Rs427,436 per tola, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association. Ten-gram gold was quoted at Rs366,457, down Rs3,687.

A day earlier, gold had gained Rs4,000. Silver also weakened, shedding Rs174 to Rs6,223 per tola. Internationally, spot gold dropped 0.7% to $4,045.29 per ounce by 11:55 am EDT, while US gold futures for August delivery declined 0.8% to $4,045.20, as per Reuters.

The US dollar hovered near a one-month high, making dollar-denominated bullion more expensive for overseas buyers and weighing on prices. Interactive Commodities Director Adnan Agar noted that gold had retreated modestly. "Today's (Tuesday's) low for gold was $4,011, and the high was $4,075.

The market was later trading at $4,040," he said. Agar pointed to the upcoming US monetary policy announcement as a key event for the market. "The US monetary policy is coming out at night, which is very important for the entire market.