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

Gold prices edged higher on Wednesday and the dollar traded weak as investors braced for the Federal Reserve's interest-rate decision later in the day.

Spot gold rose 0.4 percent to $1,971.79 per ounce, while U.S. gold futures were up half a percent at $1,972.95.

A 25-bps rate hike is fully priced in, with investors waiting to see whether there will be a tilt towards dovishness around the inflation rhetoric.

Some economists believe that today's rate hike will be the last following recent encouraging inflation data.

They expect today's rate-hike announcement to mark the end of the rate-hiking cycle, followed by a series of aggressive rate cuts next year.

Elsewhere, the European Central Bank's policy announcement is due on Thursday, while the Bank of Japan is scheduled to announce its rate decision on Friday.

The ECB is also expected to lift rates by 25 basis points, but the odds for September continue to diminish due to concerns over slowing growth.

The BOJ is likely to maintain its ultra-dovish stance.