Dollar Strength Weighs on Gold Prices Ahead of Fed Decision

Gold prices dipped slightly on Wednesday as the dollar maintained its strength and investors waited for the Federal Reserve's policy decision to gauge inflation and interest rate prospects.

The Fed is expected to keep rates steady, with a 70% chance of no change and a 30% probability of at least a 25-basis-point increase, according to the FedWatch tool. Markets anticipate an increase in September with a 76% likelihood.

The dollar's resilience made gold more expensive for holders of other currencies, limiting bullion's appeal. The US Central Command intercepted multiple ballistic missiles launched by Iran towards US forces in the Middle East on Tuesday.

Commerzbank lowered its year-end gold price forecast to $4,500 per troy ounce and predicted silver will reach $67 per troy ounce by the end of the year.