02:00 PM EST, 12/18/2024 (MT Newswires) -- (Updates prices.)

Gold edged down mid-afternoon on Wednesday ahead of an expected cut to U.S. interest rates coming when the Federal Reserve's policy committee ends its two-day meeting.

Gold for February delivery was last seen down US$8.20 to US$2,653.80 per ounce.

The price of the metal has stuck within a US$5.00 range so far this week, ahead of a widely expected 25 basis point cut to U.S. interest rates coming from the Federal Open Market Committee, its third-straight cut to rates.

While the CME FedWatch tool sees a 99% probability the committee meets expectations with a rate cut today, the outlook for 2025 is less certain as the incoming Trump Administration promises to impose inflationary blanket tariffs. The FedWatch tool sees an 82% chance the central bank stands pat on rates at its next meeting on Jan.29.

"Gold prices continue to trade soft as traders look beyond today's expected US rate cut and towards an uncertain interest rate outlook next year, as US economic data strength and Trump's expected actions continue to underpin the USD by sending Treasury yields higher," Saxo Bank noted.

The dollar edged up ahead of the committee's announcement, which will be followed by a press conference with Fed Chair Jerome Powell. The ICE dollar index was last seen up 0.06 points to 107.01.

Treasury yields eased, with the U.S. two-year note last seen paying 4.232%, down 3.4 basis points, while the yield on the 10-year note was down 0.9 points to 4.396%