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Gold treads water as potential Fed rate hike looms

MarketWatch
Gold treads water as potential Fed rate hike looms

Gold prices drifted lower early Wednesday in New York as investors braced for a monetary policy decision from the Federal Reserve later in the session that could ripple through markets. August gold GCQ8, -0.08%  fell $1.20, or 0.1%, to $1,298.20 an ounce, after settling below a psychologically significant level at $1,300 on Tuesday on the back of a strengthening dollar. The ICE U.S. Dollar Index DXY, -0.05% a measure of the dollar against a half-dozen major currencies, was flat on Wednesday but up 0.3% thus far this week. A stronger dollar can weigh on demand for assets priced in the currency, making them more expensive to buyers using other monetary units. A statement from Fed is due at 2 p.m.