Fed policy statement due at 2 p.m. EST 1900 GMT
Fed rate outlook for 2025 in focus
US GDP and inflation data due later this week

Dec 18 Reuters Gold prices were little changed on Wednesday as investors remained cautious ahead of the U.S. Federal Reserve39;s policy decision, which is also expected to offer guidance on its outlook for next year.

Spot gold inched down 0.1 to 2,643.79 per ounce by 1256 GMT. U.S. gold futures fell 0.1 to 2,659.80.

Gold price actions are less of an arrow, more of a feather at the moment and sort of drifting on book squaring, independent analyst Ross Norman said.

Attention will be on Fed policymakers39; updated economic projections for 2025, released alongside the decision, particularly regarding how much more rates are expected to be eased next year.

Markets are pricing in a 95.4 chance of a 25 basis points cut in this meeting, expected to be announced at 2 p.m. EST 1900 GMT, according to CME39;s FedWatch tool. There39;s only about a 16.3 chance of a reduction in January.

If the dot plot points to 2 cuts or less for 2025, markets would read it as hawkish, and the U.S. dollar could see another round of strength, OCBC analysts said in a note.

A stronger dollar makes greenbackpriced bullion more expensive for holders of other currencies.

Meanwhile, the Bank of Japan, Bank of England, Riksbank, and Norges Bank will deliver their policy verdicts later this week.

Investors will also pay attention to Thursday39;s U.S. GDP data and…