Gold prices fell on Wednesday, to deepen losses for the second day, as the US dollar continued to rise against its rivals, ahead of the Federal Reserve's rate decision after the conclusion of the first monetary policy meeting in 2021.

Gold prices fell more than 0.4% to $1,842.97 an ounce, after opening at $1,851.01 and hitting a low of $1,853.15.

The yellow metal gained 0.3% yesterday, and posted its third daily loss in 4 days as the US dollar rose.

The US dollar index rose over 0.25% against a basket of major currencies today, which weighs down on the prices of gold and other dollar-denominated metals.

The US dollar is shining as the best alternative investment, due to renewed concerns about the global economy and rising coronavirus infections in most parts of the world.

The Federal Reserve will unveil its rate decisions later today, amid broad expectation to keep the interest rates unchanged at 0.25%.

At of 19:00 GMT, the Fed will unveil its monetary policy statement and economic outlook, and Chairman Jerome Powell will deliver a speech at 19:30 GMT.

The first Fed meeting in 2021 is expected to provide key insight on the future of the US monetary policy, with President Biden's new approach in mind.

Gold stocks at the SPDR ETF fell 0.87 metric tonnes yesterday, with the total at the lowest level since January 14 at 1,172.38 MT.

Oil prices rose on Wednesday, with the US crude resuming its gains, while Brent extend gains for the third straight day, after a drop in the US crude inventories according to the American Petroleum Institute's preliminary data, and ahead of the EIA's weekly report.

US crude rose 0.6% to $53.09 a barrel, after opening at $52.76, and hit a low of $52.68, and Brent crude rose 0.9% to $56.48 a barrel, after opening at $56.00, and hit a low of $55.96.

US crude yesterday rose 0.25% yesterday, and Brent crude futures rose 0.1%, in their second straight daily gain.

The American Petroleum Institute reported yesterday that crude inventories fell 5.3 million barrels during the week ending January 22, beating forecasts of a rise by 0.5 million barrels.

The total commercial inventories fell to 487 million barrels, the lowest level since the week ending November 6, in a positive sign of the US domestic demand.

While the US Energy Information Administration's official data will be released on Friday, amid forecasts for inventories to rise by 1.6 million barrels.

Asian stock indices opened the third session of the week mixed with Japan, New Zealand, and South Korea higher, while China, Australia and Hong Kong down, as investors await the first FOMC meeting of 2021. 

From Australia, the leading index rose 0.1%, slowing down from 0.7% in November, while consumer prices rose 0.9%, slowing down from 1.6% in the third quarter. 

Core consumer prices rose 0.4% as expected, up from 0.3% in the third quarter. 

The Federal Open Market Committee is expected to maintain rates at near zero at today's meeting with Fed Chair Jerome Powell explaining the decisions in a speech later. 

The World Health Organization reported over 99.36 million coronavirus infections worldwide so far, with a death toll of 2.135 million. 

Japan's TOPEX rose 0.30%, while Nikkei 225 rose 0.17% to 28,596. 

China's CSI 300 fell 0.16% to 5,504, while Shanghai declined 0.10% to 3,565. 

Hong Kong's Hang Seng barely inched down 0.01%, while South Korea's KOSPI shed 0.03% to 3,141. 

New Zealand's NZX 50 rose 0.14%, while Australia's S&P/ASX 200 fell 0.79% to 6,770. 

USD/JPY tilted higher in Asian trade amid a lack of data from Japan and ahead of some US data and the Federal Reserve's policy decisions later today. 

As of 07:06 GMT, USD/JPY rose 0.02% to 103.64, with an intraday high at 103.75. 

From the US, durable goods orders are expected up 1% in December, while core orders are expected up 0.5%.

The Federal Open Market Committee is expected to maintain rates at near zero at today's meeting with Fed Chair Jerome Powell explaining the decisions in a speech later.