2023.02.0108:56:00UTC+00Gold Slips Ahead Of Central Bank Decisions

Gold prices were marginally lower on Wednesday and the dollar slipped against the euro as investors looked ahead to interest-rate decisions from the Federal Reserve, the European Central Bank and the Bank of England.

Spot gold slipped 0.1 percent to $1,925.65 per ounce, while U.S. gold futures were down 0.2 percent at $1,940.75.

After a two-day policy meeting, the U.S. Federal Reserve announces its rate decision later in the day.

While markets expect another 25-bps rate hike, the accompanying statement as well as Fed Chair Jerome Powell's news conference will be scrutinized for whether the U.S. central bank has reacted the end of its rate-hike cycle.

Overnight data showing a slower-than-expected increase in U.S. labor costs helped spur expectations that inflation will ease further in the coming months and eventually pave the way for the Fed to cut rates by year-end.

The European Central Bank (ECB) and Bank of England (BoE) will review their monetary policies on Thursday, and both are expected raise their key policy rates by 50 bps.