Gold prices were flat in Asian trade on Wednesday as investors refrained from placing big bets ahead of the U.S. Federal Reserve's policy decision, while also monitoring developments surrounding the Israel-Iran conflict.

Spot gold was flat at $3,388.04 an ounce, as of 0341 GMT. U.S. gold futures were largely unchanged at $3,406.50.

"Gold prices fluctuated as investors tracked escalating risks in the Middle East. Lackluster U.S. reports on retail sales, housing and industrial production strengthened the case for the Fed to cut interest rates later this year," analysts at ANZ said in a note.

Iran and Israel launched fresh missile attacks on each other on Wednesday as an air war between the two arch-foes entered its sixth day despite calls from U.S. President Donald Trump for Iran's unconditional surrender.

The U.S. is deploying more warplanes to the Middle East and expanding the deployment of other warplanes, three U.S. officials told Reuters.

Data on Tuesday showed U.S. retail sales fell more than expected in May, weighed down by a decline in auto purchases as efforts to head off potential tariff-related price hikes waned.

Meanwhile, the U.S. central bank is widely expected to leave interest rates unchanged at the conclusion of its policy meeting later in the day.

Focus will also be on the Fed's latest projections for the economy and interest rates.

"We maintain our forecast that structurally sound central bank purchases and increased ETF holdings from Fed cuts will lift gold prices to $3,700/oz by end-2025 and $4,000 by mid-2026," Goldman Sachs said in a note.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.43% to 945.94 tonnes on Tuesday.

Elsewhere, spot silver fell 0.1% to $37.22 an ounce, platinum rose 0.3% to $1,266.04, while palladium rose 0.3% to $1,054.63. (alg)

Source: Reuters