Gold Edges Higher as Investors Await Fed Rate Decision

Gold prices ticked up on Wednesday as oil prices eased, but investors remain focused on the U.S. Federal Reserve's policy decision later in the day.

The Fed is widely expected to raise interest rates by at least a quarter point, with a 92.4% probability according to CME FedWatch.

Frank Walbaum, a market analyst at trading platform Naga.com, noted that 'a hawkish Fed could pull gold down,' while any soft messaging may ease bets on hikes and help the metal recover.

Gold is often seen as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding bullion.