Gold futures edged lower Wednesday as investors await the outcome of a Federal Reserve meeting that isnt expected to result in policy changes, but will be combed for clues to the path of interest rates and asset purchases.

Gold remains contained inside a large bearish channel after it found some muchneeded support around the 1,700 area, said Fawad Razaqzada, market analyst at ThinkMarkets. For gold to hold onto this area, the Fed will need to be less hawkish than some expect, he said.

If the U.S. central bank unexpectedly announces yield curve control or operation twist, this could surely send gold sharply higher, said Razaqzada, in a market update. Otherwise, yields and the dollar could both extend their recent gains and put further downward pressure on the precious metal.

In Wednesday dealings, the dollar was mostly stable, with the ICE U.S. Dollar Index little changed. The 10year Treasury note yield, meanwhile, touched its highest levels since January 2020. A rise in government debt yields can undercut appetite for precious metals.

Against this backdrop, gold for April delivery was down 2.30, or 0.1, at 1,728.60 an ounce on Comex. May silver edged up by 5.2 cents or 0.2, at 26.06 an ounce.

Gold remains in waitandsee mode ahead of the Feds latest economic projections, said Carlo Alberto De Casa, chief analyst at ActivTrades, in a note.

The Fed will announce its monetary policy decision at 2 p.m. Eastern time, about a half hour after gold futures settle for the…