Fed Decision Sends Gold Prices Lower Ahead of Rate Announcement

Gold prices dipped slightly on Wednesday as investors awaited the Federal Reserve's decision on interest rates. The Fed is widely expected to keep rates steady, with a 70% chance of no change and a 30% probability of a 25-basis-point increase, according to the FedWatch tool.

The dollar held firm near a one-month high, making gold more expensive for holders of other currencies. This weighed on gold prices, which fell 0.1% to $4,021.87 per ounce in early trading.

Despite the slight dip, market expectations suggest that interest rates will remain unchanged, and inflation remains a concern. Both the Bank of England and the Bank of Japan are expected to keep rates steady on Thursday and Friday, respectively.