Gold futures settled higher on Wednesday as the dollar slipped and bond yields dropped ahead of the Federal Reserve's policy announcement.
CME Group's FedWatch Tool indicates a 99% chance the Fed will leave rates unchanged.
Meanwhile, the likelihood of another rate hike in November has seemingly decreased in recent days. The FedWatch Tool currently indicates just a 26.9% chance of a quarter point rate increase.
The Bank of England and Bank of Japan are scheduled to announce their rate decisions on Thursday.
The dollar index dropped to 104.67 before recovering slightly to 104.75, but still remained well below the flat line, losing about 0.43%.
Gold futures for December ended higher by $13.40 or about 0.7% at 1,967.10 an ounce.
Silver futures for December ended up $0.380 at $23.836 an ounce, while Copper futures for December settled at $3.7760 per pound, gaining $0.0290.
In economic releases from Europe, preliminary data from Destatis showed earlier today that German producer prices declined at a record pace in August mainly due to the base effect caused by the very high price level of the previous year.
The producer price index fell 12.6% year-over-year in August, much faster than the 6% decline in the prior month, which was the first decline since November 2020.
Elsewhere, data showed the U.K. consumer price inflation slowed unexpectedly in August.
U.K. consumer price index posted an annual increase of 6.7% in August after rising 6.8% in July, according to the Office for National Statistics. This was the weakest inflation since February 2022.
