Gold futures settled higher on Wednesday, with the dollar turning in a subdued performance ahead of the Federal Reserve's monetary policy announcement.
Investors are pricing in a 25-bps rate hike, and are 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.
The dollar index, which dropped to 101.06 in the European session, remains weak at 101.26, down 0.08% from the previous close.
Gold futures for August ended higher by $6.40 or about 0.3% at $1,970.10 an ounce.
Silver futures advanced $0.146 to $24.970 an ounce, while Copper futures ended down $0.0135 at $3.9020 per pound.
"They will probably signal that they want to see the impact of the current tightening cycle and that they will probably skip raising rates in September," Edward Moya, senior market analyst at OANDA, said of the Fed. "They will likely be clear in suggesting that more tightening could very well happen."
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.
