2021.01.2710:01:00UTC+00Gold Prices Ease Ahead Of Fed Decision

Gold prices fell slightly on Wednesday and the dollar edged higher against a basket of currencies as investors waited for comments from Federal Reserve Chair Jerome Powell.

Spot gold dropped 0.3 percent to $1,846.32 per ounce, while U.S. gold futures were down 0.3 percent at $1,844.55 per ounce.

The U.S. central bank is widely expected to leave interest rates unchanged, but many expect the central bank to provide additional guidance about its bond purchasing program to help speed the economic recovery.

The Fed chair is due to speak at a news conference, with investors looking for clarity around the fiscal side of things and coronavirus vaccines. The precious metal may gain some support if Powell sounds dovish.

U.S. stimulus talks also remain in focus after U.S. Senate Majority Leader Chuck Schumer said Democrats will move forward on President Joe Biden's $1.9 trillion coronavirus relief plan without Republican support if necessary.