Gold Prices Slip as Dollar Strengthens Ahead of Fed Decision

Gold prices edged lower on Wednesday as the dollar held firm and market participants awaited the Federal Reserve's policy decision for clues on inflation and interest rates.

The Fed is expected to keep interest rates steady, with a 70% chance of no change 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.

Commerzbank has lowered its year-end gold price forecast to $4,500 per troy ounce and expects silver to reach $67 per troy ounce by the end of the year.