Gold Falls Amid Strong Dollar and Rising Yields Ahead of Fed Decision

Gold prices edged lower on Wednesday due to a firm dollar and rising US Treasury yields. The spot price of gold fell by 0.2% to $4,020.69 per ounce, while US gold futures for August delivery lost 0.4% to $4,019.40.

The increase in the US dollar index made bullion more expensive for overseas buyers, weighing on gold prices. According to Jim Wyckoff, a market analyst at American Gold Exchange, 'The stronger US dollar index and the slight uptick in Treasury yields are negative forces.'

The market is awaiting the US Federal Reserve's interest-rate decision, which is expected to be announced at 2 p.m. EDT (1800 GMT). The FedWatch tool from CME Group indicates that about 64% of traders expect policymakers to hold interest rates steady in today's meeting.