Gold Prices Ticked Up Ahead of Fed Rate Decision

Gold prices edged higher on Wednesday as investors awaited the U.S. Federal Reserve's policy decision and comments from Fed Chairman Kevin Warsh for clues on inflation and interest rates.

The spot gold price inched up 0.3% to $4,040.63 per ounce by 0656 GMT, while U.S. gold futures for August delivery remained steady at $4,038.90.

The dollar's weakness made bullion more affordable for holders of other currencies, said Kelvin Wong, a senior market analyst at OANDA.

Market expectations indicate a 68% chance that the central bank will hold rates steady and a 32% probability of a 25-basis-point hike. The Bank of England and the Bank of Japan are widely expected to keep rates unchanged on Thursday and Friday, respectively.