Gold prices edge higher as eyes turn to Fed [Video]

Gold prices edged higher on Wednesday, climbing back from its four-week low ahead of a U.S. Federal Reserve policy decision that could shed more light on the central bank’s rate trajectory following hot U.S. economic data in the recent weeks.

Spot gold was 0.3% higher at $2,294.10 per ounce, after hitting its lowest level since April 5 earlier in the session. Prices fell as much as 2% on Tuesday due to an uptick in the dollar and U.S. Treasury yields.

Gold futures ticked up 0.1% to 2,305.3 per ounce.

Bullion prices have fallen more than $140 after scaling a record high of $2,431.29 on April 12. U.S. gold futures were down 0.3% at $2,296.30 per ounce.

“Gold was unwinding overbought conditions and is now oversold so it’s likely that there is some technical bargain hunting appearing,” said StoneX analyst Rhona O’Connell who expected a near-term consolidation in prices.

Focus is now on the U.S. central bank’s policy decision due …