The prospects for a less dovish Fed pushed the yield on the benchmark 10-year US government bond to its highest level since November 22 and should act as a headwind for the non-yielding Gold price.

Spot gold was largely unchanged at $2,646.10 an ounce, while gold futures expiring in February were marginally lower at $2,660.72 an ounce by 22:51 ET (03:51 GMT). The Fed is widely expected to cut interest rates by 25 basis points, but the focus will be on the Fed's future economic projections and Chair Jerome Powell's comments.

Gold prices edged lower as the dollar held firm on Wednesday, with investors awaiting a key U.S. Federal Reserve decision expected to shape market sentiment and gold's trajectory by outlining the central bank's 2025 outlook.

Gold prices remained flat for most of Wednesday as investors waited for the outcome of the US Federal Reserve’s two-day meeting later in the day. Prices had fallen in the previous session as the market remained worried about the long-term outlook of interest rates in the US.