(Reuters) - Gold prices were little changed on Wednesday as investors waited for the Federal Reserve's policy decision and comments from Chair Jerome Powell, while platinum surged to a more than four-year peak.

Spot gold was steady at $3,387.89 an ounce by 1145 a.m. EDT (1545 GMT).

U.S. gold futures was flat at $3,406.30.

Markets are trading sideways right now as everyone is waiting for the Fed's decision and the developments in the Middle East, Marex analyst Edward Meir said.

In the Middle East, Iran's Supreme Leader Ayatollah Ali Khamenei rejected U.S. President Donald Trump's demand for unconditional surrender. 

Meanwhile, the Fed is expected to keep interest rates unchanged when it announces its policy decision, due at 2 p.m. EDT (1800 GMT).

Trump knocked Powell for what he expected would be a decision not to lower interest rates and said the man he put in the role during his last term had done a poor job.

Gold's appeal is increased by geopolitical tensions and by low interest rates. But prices lost momentum after hitting a session high of $3,451.04 on Monday, nearing a record peak set in April.

"The prevailing trend of seeking alternative stores of value beyond the U.S. dollar remains strong, driven by a growing desire for assets that are independent of external control," said Ryan McIntyre, Managing Partner at Sprott Inc.

Spot silver fell 1% to $36.87 per ounce, after reaching its highest level since February 2012 earlier.

Goldman Sachs said in a note that platinum and silver's recent rallies are primarily speculative and lack fundamental support.

Platinum added 3.5% to $1,306.68, highest since February 2021.

"The high price of gold has shrunk Chinese gold jewellery demand and there are high hopes that platinum will be the substitute. If May demand remains strong or increases, platinum will push higher; if April was a one-off, expect a sharp retracement," said Tai Wong, an independent metals trader.

Elsewhere, palladium edged 0.6% lower to $1,046.

(Reporting by Sarah Qureshi and Ashitha Shivaprasad in Bengaluru. Editing by Jane Merriman and Vijay Kishore)

By Sarah Qureshi