Gold remained steady above the key level of $3,000 per ounce on Wednesday, close to its record high reached the previous day, supported by tensions in the Middle East and uncertainties in trade. Traders were anticipating the Federal Reserve's decision later in the day.

As of 0230 GMT, spot gold was holding at $3,029.70 per ounce after achieving an all-time high of $3,038.26 on Tuesday. U.S. gold futures slightly declined by 0.1% to $3,037.50.

Tim Waterer, chief market analyst at KCM Trade, mentioned that the current market conditions, with concerns about tariffs, growth, and inflation, are favoring gold as a safe-haven asset in times of uncertainty.

Investors are apprehensive about a potential economic slowdown and increased recession risks due to President Trump's tariffs, which are likely to drive up inflation. These tariffs have escalated trade tensions, including a 25% tax on steel and aluminum that took effect in February, with additional reciprocal and sectoral tariffs scheduled for April 2.

It is anticipated that the Federal Reserve will maintain its benchmark interest rate within the 4.25%-4.50% range at the conclusion of its two-day policy meeting. Gold, being a non-yielding asset, tends to perform well in a low-interest rate environment.

Waterer suggested that if the Federal Open Market Committee (FOMC) meeting adopts a dovish stance due to growing uncertainties surrounding the impact of tariffs on economic growth, it could further boost the price of gold, potentially allowing it to surpass the $3,050 mark.

In other news, Israeli airstrikes in Gaza resulted in the death of over 400 people on Tuesday, ending a period of relative calm since a ceasefire was established nearly two months ago. Israel warned that the attacks were just the beginning.

Silver saw a decrease of 0.3% to $33.92 per ounce, while platinum dropped by 0.5% to $991.80, and palladium decreased by 0.7% to $960.75.