Ella 
Gold prices (gold/USD) were consolidating around $1,930 during the Asian session on Wednesday. Market participants tend to wait and see ahead of the Federal Reserve’s (Fed) interest rate decision and press conference. These events may trigger market volatility.
Meanwhile, the U.S. dollar index , which measures the dollar’s value against six major currencies, remained flat near 105.10 after rebounding from a one-week low of 104.81. The U.S. 10-year Treasury yield reached its highest level in 16 years, hovering at 4.365%, which could limit the downside for the U.S. dollar (USD).
The Federal Reserve (Fed) will announce a two-day monetary policy meeting on Wednesday, with interest rates widely expected to remain in a range of 5.25% to 5.5%. There’s a 99% chance the Fed will keep rates on hold at its September meeting, according to the CME Fedwatch tool. However, the odds of another rate hike at the November and December meetings have diminished, according to the CME FedWatch Tool.
Fed Chairman Jerome Powell’s press conference will provide some hints on the “dot plot” and inflation expectations. It is worth noting that rising interest rates will increase the opportunity cost of investing in non-yielding assets, which means that the outlook for precious metals is not optimistic.
Next, gold traders will focus on the much-anticipated Federal Reserve interest rate decision at 18:00 Beijing time on Wednesday. This event may provide direction for gold prices. Later this week, the Bank of England will announce its benchmark interest rate on Thursday, and the Bank of Japan’s monetary policy meeting is scheduled for Friday.
