FX.co ★ Gold Inches Higher As Investors Await Fed Meeting Outcome

Gold prices were slightly higher on Wednesday as investors await the outcome of a Federal Reserve meeting later in the day.

Spot gold edged up 0.1 percent to $1,981.49 per ounce while U.S. gold futures were up 0.2 percent at $1,996.35.

The dollar ticked up while Treasury yields traded mixed after U.S. core inflation rose last month, raising concerns that the U.S. central bank might not be quick to declare a win in its policy efforts.

Investors await the U.S. Labour Department's report on producer price inflation as well as the final Federal Reserve decision of the year later in the day for additional clues on the Fed's rate trajectory.

While no change in interest rates is expected, Chair Jerome Powell's press conference and the Fed's dot plot of future policy trajectory accompanied by revisions to the summary of economic projections could offer more clarity on when the Fed could begin cutting rates next year.

Thursday's European Central Bank (ECB) and Bank of England (BoE) decisions also remain under investors' radar, with the ECB expected to cut its growth and inflation forecasts.

The BoE is expected to deliver a hawkish hold, keeping interest rates unchanged at 5.25 percent.