Gold Prices Tumble Ahead of Fed Rate Decision

Gold prices edged lower on Wednesday as investors awaited the Federal Reserve's policy decision for clues on inflation and interest rates. The Fed is expected to hold interest rates steady, with a 70% chance of a status quo and a 30% probability of at least a 25-basis-point increase.

The dollar held firm near a one-month high, making gold more expensive for holders of other currencies. Commerzbank lowered its year-end gold price forecast to $4,500 per troy ounce earlier this week, while spot gold fell 0.1% to $4,021.87 per ounce by 0052 GMT.

The Bank of England and the Bank of Japan are also expected to keep rates unchanged on Thursday and Friday, respectively, cautioning against rising inflation.