Gold prices were flat to slightly higher on Wednesday, as investors await a statement from the Fed policy meeting along with a news conference by Chairman Jerome Powell for clues on the timing of stimulus tapering amid surging U.S. inflation.
Spot gold edged up 0.2 percent to $1,801.48 per ounce, while U.S. gold futures were marginally higher at $1,800.55.
The Fed policy statement is due at 2:00 pm EST, following a two-day meeting of the Federal Open Market Committee. Fed Chair Jerome Powell speaks to the media at 2:30 EST.
U.S. Treasury yields edged higher ahead of the Federal Reserve Board’s latest monetary policy decision. The U.S. dollar index moved into positive territory after trading lower in Asian hours.
Markets will be highly sensitive to any comment about the timing and pace of asset purchase reductions, but many expect that the Fed will sound dovish when it concludes its meeting.