Gold ticks up ahead of Fed rate decision
GLD•Gold edges higher before Fed policy decision
July 29 (Reuters) - Gold edged higher on Wednesday, supported by a weaker dollar, as investors awaited the U.S. Federal Reserve's policy decision and comments from Fed Chairman Kevin Warsh for clues on the inflation and interest rate outlook.
Spot gold XAU= inched 0.3% higher to $4,040.63 per ounce by 0656 GMT. U.S. gold futures GCcv1 for August delivery were steady at $4,038.90.
The dollar eased, making greenback-priced bullion more affordable for holders of other currencies. USD/
"Gold is very much connected to today's FOMC meeting.... The scenario that may see a potential reversal of the recent bearish bias in gold prices will be the Fed turning to a less hawkish rhetoric," said Kelvin Wong, a senior market analyst at OANDA.
The Fed's policy decision is due at 1800 GMT, and Warsh's comments are scheduled for 1830 GMT.
Market expectations indicate a 68% chance that the central bank will hold rates steady and a 32% probability of a 25-basis-point hike, according to the FedWatch tool. Markets are pricing in a 77% chance of an increase in September. FEDWATCH
