WASHINGTON (dpa-AFX) - Gold prices were flat to slightly lower on Wednesday as investors awaited the outcome of a two-day policy meet of the U.S. Federal Reserve amidst inflation concerns and the Omicron threat.
Spot gold was little changed at 1,770.70 per ounce, while U.S. gold futures were down 0.1 percent at $1,770.80.
As inflation expectations rise, the Fed is poised to end its $120 billion a month bond buying program sooner than previously expected and bring forward the possible timing of rate hikes.
The dollar held firm and Treasury yields rose slightly as investors await Fed Chair Jerome Powell's press conference due at 2:30 a.m. ET.
The Fed has a very tight line to walk after data showed producer prices increased by more than expected in November.
The producer price index showed a year-on-year increase of 9.6 percent, which was the fastest pace on record and higher than the 9.2 percent increase forecast by economists.
Consumer inflation is also running high, with U.S. consumer prices rising last month at the fastest annual pace in nearly 40 years, piling additional pressure on the Fed to tweak monetary policy.
The Fed announces its decision on interest rate at 2:00 pm ET.
U.S. retail sales and export and import prices, all for November, as well as business inventories data for October, New York Fed's empire manufacturing index and NAHB housing market index for December will also be released in the New York session.
Copyright RTT News/dpa-AFX