13.12.202208:37:00UTC+00Gold Inches Higher Ahead Of US Inflation Data, Fed Decision

Gold edged higher on Tuesday and the dollar traded weak as investors awaited key U.S. inflation data later in the day and the Federal Reserve's policy decision on Wednesday.

Spot gold rose 0.2 percent to $1,784.27 per ounce, while U.S. gold futures were up 0.1 percent at $1,794.85.

Traders await a closely watched report on U.S. consumer price inflation, which could show moderation in the annual pace.

The Federal Reserve's last policy meeting of the year gets underway later today, with the U.S. central bank expected to sound 'less-hawkish' amid a decline in October's inflation report and in-line PPI numbers.

The Fed, European Central Bank and the Bank of England are all expected to raise rates by 50 basis points this week, but the forecasts and guidance on interest rates will be key amid the weakening growth outlook.

Traders are likely to pay close attention to the Fed's accompanying statement, although a lot of key data will be released before the next meeting in late January/early February.