Gold edges lower ahead of Fed decision on interest rates

Gold prices inched lower on Wednesday as the dollar held firm and market participants awaited the Federal Reserve’s policy decision for clues ​on inflation and the path of U.S. interest rates.

Spot ‌gold fell 0.1% to $4,021.87 per ounce by 0052 GMT. U.S. gold futures for August delivery lost 0.4% to $4,021.70.

The Fed will conclude its two-day policy meeting ​on Wednesday and is expected to hold interest rates steady.

Market ​expectations indicate a 70% chance of a status quo 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.

Both the Bank of England and the Bank of Japan are widely expected to keep rates unchanged on Thursday and Friday, respectively, and caution ​against rising inflation.

The dollar was perched near a one-month high, making ​greenback-priced bullion more expensive for holders of other currencies.

US Central Command said on ‌Tuesday ⁠that Iran had launched multiple ballistic missiles “in an attempted surprise attack on U.S. forces based in the Middle East,” and that the missiles were successfully intercepted.

Oman has presented Iran with a plan backed by Gulf ​states to manage the ​Strait of ⁠Hormuz, including collecting voluntary fees for using it, a Gulf source and a Western diplomat told Reuters on ​Tuesday.

A US official again rejected the idea of ​tolls or ⁠fees for ships transiting the strait.

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

Spot silver gained 0.1% to $57.20 per ounce, platinum inched 0.1% higher to $1,605.96, while palladium ​fell 0.1% to $1,268.35.