Gold slipped on Wednesday as investors awaited next week's Federal Reserve policy decision for fresh signals on the trajectory of US interest rates.
Spot gold was down 0.1% at $4,118.64 per ounce by 0018 GMT, while US gold futures for December delivery dropped 0.1% to $4,137.60.
The Fed will skip raising interest rates this month and deliver a hike in December, according to nearly all economists polled by Reuters, as policymakers signal patience even as stubborn inflation argues for a tougher response.
Focus has turned to the Fed's October 27-28 policy meeting and next week's Personal Consumption Expenditures (PCE) data, a key gauge closely watched by the central bank as it targets a 2% inflation rate.
According to CME's FedWatch Tool, traders are pricing in an 84% chance that the central bank will leave rates unchanged next week, while expectations for a hike in December remain at 90%.
Higher interest rates typically weigh on gold prices because they increase the opportunity cost of holding bullion, which does not pay interest.
The Bank of Japan will raise rates in December to 1.50%, following June and September increases, according to a majority of economists in a Reuters poll, keeping up a quicker pace in a campaign that started with just one rate rise a year.
Bank of England policymaker Megan Greene said the risks of a pickup in broader inflation from the energy price shock caused by the Iran war were greater than the BoE expected. She reiterated her view that interest rates should go up.
On the geopolitical front, Iranian President Masoud Pezeshkian discussed mediation efforts and regional developments during a meeting with Pakistan's army chief, Field Marshal Asim Munir, in Tehran, Iran's Nournews reported on Tuesday.
Among other metals, spot silver steadied at $57.95 per ounce, platinum rose 0.5% to $1,656.10 and palladium was little changed at $1,102.13.
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