21.03.202310:07:00UTC+00Gold Edges Lower As Investors Look To Fed For Direction

Gold prices edged lower on Tuesday as caution prevailed ahead of the Fed's interest-rate decision.

Spot gold dropped half a percent to $1,968.62 per ounce, after having hit a one-year high in the previous session. U.S. gold futures were down half a percent at $1,973.05.

The dollar held steady and U.S. Treasury yields climbed as fears of contagion in the banking sector subsided after the rescue of Credit Suisse by UBS.

The U.S. economic calendar remains light today with a report on existing home sales likely to attract some attention.

A two-day meeting of the U.S. Federal Reserve gets underway today, with markets expecting a 25-bps rate hike on Wednesday.

The Fed will also release its latest dot-plot projections on interest rates, inflation, unemployment and economic output.

The Bank of England may press ahead with another rate rise on Thursday, with inflation data due from the Office for National Statistics on Wednesday likely to shape the interest-rate decision.