Gold futures dipped in Asia on Wednesday with sentiment on edge ahead of the latest review of interest rates by the Fed.
Comex gold futures fell 0.36% to $1,247.64 a troy ounce.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.11% to 93.92.
The Federal Reserve Open Market Committee (FOMC) got its two-day policy meeting underway on Tuesday amid expectations the central bank will leave interest rates unchanged.
Investors, however, will parse the policy statement on Wednesday for fresh insight into the central bank’s thinking on monetary tightening.
Following its decision to raise rates in June for the second time this year, the Fed said that the slowdown in inflation was transitory and signaled its intention to raise rates at least once more this year.
Overnight, gold prices slipped from their highest level in around a month in North American trade on Tuesday, as market players looked ahead to the Federal Reserve's policy meeting for any new insight on the timing of the next U.S. rate hike and clues on how the central bank plans to pare back its balance sheet.
Gold prices finished a few cents lower on Monday, ending a six-session win streak.
The U.S. dollar sank to a fresh 13-month low against a basket of the other major currencies, with traders skeptical the outcome of the Fed's meeting would do much to alter the greenback's recent weak trend.
Focus will also be on headlines coming out of Washington, where the Senate is expected to continue working to repeal Obamacare. The investigation into U.S. President Donald Trump campaign's ties to Russia will continue to get attention.
Gold has been well-supported in recent sessions as ongoing political turmoil in the White House and weakness in the U.S. dollar spurred haven demand for the precious metal.
