Gold Prices Tumble as Fed Decision Looms

Gold prices edged lower on Wednesday as investors waited for the Federal Reserve's policy decision on interest rates. The dollar held firm, and market expectations indicate a strong possibility of keeping rates steady. According to the FedWatch tool, there is a 70% chance of maintaining the status quo and a 30% probability of at least a 25-basis-point increase.

Markets are cautious ahead of the Federal Reserve's decision, with investors reassessing inflation trends and central bank expectations across major economies. A softer US dollar provided support for several major currencies.

Bank of America US economist Aditya Bhave wrote in a note that 'the spike in oil prices has made the July Fed decision a close call.' He expects a hold, but notes that Fed Chairman Kevin Warsh has enough votes either way.