Gold prices were subdued on Wednesday as market participants hunkered down ahead of the ‌U.S. Federal Reserve's policy decision, where a rate hike is widely expected.

Spot gold was down 0.1% at $4,288.48 per ounce, as of 0143 GMT, after scaling a more than one-month low on Monday. U.S. gold futures for December delivery were also down 0.1% at $4,328.10.

Traders ​are now pricing in a 92.4% chance of at least a ⁠25-basis-point U.S. rate hike later in the day, according to CME FedWatch. The ​policy decision will be followed by a press conference from Fed Chair Kevin Warsh.

"A hawkish Fed could further pull gold down, while any soft messaging may ease bets on hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East," said Frank Walbaum, a market analyst at trading platform Naga.com.

Gold is ​often seen as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding ‌bullion.

The ⁠dollar held onto recent gains, and oil prices hovered above $100 a barrel. A stronger dollar makes greenback-priced gold more expensive for holders of other currencies, while elevated oil prices add to price pressures.

On the geopolitical front, Saudi Arabia issued security alerts over ​a range of territory, ​including in the ⁠holy city of Mecca and the second-largest city, Jeddah, following a week of attacks from Iran-aligned fighters that have drawn it ​deeper into the Middle East war.

Commerzbank said it was somewhat ​surprising that ⁠gold prices had not come under greater pressure so far. It noted that gold's resilience may be supported by persistent fiscal concerns, reflected in elevated long-term government bond yields, ⁠as ​well as a recent rise in U.S. political risks.

Among ​other metals, spot silver steadied at $63.67 per ounce, platinum edged 0.3% lower to $1,770.47, while palladium rose nearly ​1% to $1,301.61.