Sterling and the euro edged lower against the dollar on Wednesday as markets braced for the Federal Reserve’s rate decision, with Jerome Powell’s final press conference as Chair carrying meaningful hawkish risk given the absence of meaningful progress on a US-Iran deal and the Strait of Hormuz closure. 

A fresh bout of AI-driven jitters in US equities provided the dollar with some early support, though that recovery proved short-lived as month-end rebalancing flows again capped any sustained gains.

Gold prices on Tuesday sank to their lowest levels in nearly a month, as the U.S. dollar firmed and oil prices climbed with investors eyeing a crush of central bank interest rate decisions this week.

Spot gold dropped 1.8% to settle at $4,597.06/oz and gold futures declined 1.8% to settle at $4,609.35/oz.

A tracker of the U.S. dollar against a basket of major currencies strengthened, making bullion more expensive for overseas buyers. The greenback has been floating just above pre-war levels, as traders view it as a relative safe-haven amid an oil supply shock due to the U.S.’s status as a major energy exporter.

The average U.S. gasoline price rose to its highest level in nearly four years, jumping more than 40% since the U.S. and Israel attacked Iran at the end of February, according to data from the American Automobile Association or AAA.

Prices at the pump were near $4.18 a gallon on Tuesday, up 11 cents a gallon in this month and $1.19 a gallon since late February, AAA data showed.

Bitcoin fell below $77,000 on Tuesday after another failed breakout attempt, as a continued impasse between the U.S. and Iran and caution ahead of key central bank meetings dented risk appetite.

The world’s largest cryptocurrency was last down 0.5% at $76,377.5 by 17:38 ET (21:38 GMT).