WASHINGTON (dpa-AFX) - Gold ticked higher on Wednesday while the dollar slipped ahead of the Federal Reserve's monetary policy decision later in the day and the Bank of England's rate decision due on Thursday.
Earlier in the day, the Bank of Japan lifted short-term policy rates and announced plans to reduce monthly bond buying in a hawkish pivot.
Spot gold rose 0.4 percent to $2,420.64 per ounce, while U.S. gold futures were up 0.6 percent at $2,466.10.
The dollar index eased ahead of the Fed's monetary policy announcement and the release of ADP's report on U.S. private sector employment later in the day.
The Fed is widely expected to leave interest rates unchanged, but the accompanying statement might provide hints on the timing and pace of interest-rate cuts in the next few months.
Traders have priced in a 100 percent chance for a September rate reduction, according to the CME FedWatch Tool.
Elsewhere in Europe, Eurozone inflation rose slightly in July, while core inflation remained stable, flash data from Eurostat showed today.
The Bank of England's rate decision is due on Thursday, with markets remaining split on whether the central bank will deliver its first rate cut since the pandemic.
Geopolitical developments also remained on investors' radar after Israel has killed a high-ranking Hamas leader in Iran, raising fears that the move could escalate the conflict in the region.
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