Gold Prices Inch Lower Ahead of Fed Decision on Interest Rates

Gold prices inched lower on Wednesday as investors awaited the Federal Reserve's policy decision for clues on inflation and interest rates.

Spot gold fell 0.1% to $4,021.87 per ounce by 0052 GMT, while U.S. gold futures for August delivery lost 0.4% to $4,021.70.

The Fed is widely 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, according to the FedWatch tool. Markets are pricing in a 76% chance of an increase in September.

The dollar's strength made greenback-priced bullion more expensive for holders of other currencies, perched near a one-month high.