Gold prices fell slightly on Wednesday, deepening losses for the second day near a 2-week low, ahead of the Federal Reserve’s decisions after the conclusion of its last monetary policy meeting in 2021, which is expected to deliver insight on the near tightening of the US monetary policy.

Gold prices fell 0.2% to $1,766.78 an ounce, after opening at $1,771.11, and hit a day high at $1,773.90.

Gold closed lower by 0.9% yesterday, and hit a 2-week low of $1,766.45, after the US dollar rose following strong economic data in the US.

The Fed will conclude its meeting later today amid expectations to keep the interest rate at 0.25% unchanged.

The decision will be reveled at 19:00 GMT, and will be followed by a press conference from the Fed Chief Jerome Powell at 19:30 GMT to comment on monetary policy.

The meeting is expected to offer some clues as the Fed is expected to cut the bonds purchases program much earlier than expected, opening the door for hiking interest rates in the first half of next year.

US consumer prices rose 6.8% in November, the fastest such rate since 1982, triggering bets surrounding the Fed's meeting this week, and raised the bets for a rate hike by 25 basis points in May 2022 .

Gold stocks at the SPDR ETF fell 2.04 metric tonnes yesterday, with the total at the lowest level since last November 17 of 980.60 metric tonnes.

Sterling rose in European trade for the second straight session against dollar, marking week highs on reduced concerns over Omicron in the UK, and following strong inflation data in November.

GBP/USD rose 0.4% to 1.3283, with an intraday low at 1.3221, after closing up 0.1% yesterday, the third profit in four days as scientists played down the risks of the Omicron variant in the UK.

Britain also decided to remove all red listed coronavirus countries from travel lists in light of new developments. 

Otherwise, consumer prices rose 5.1% in November, the highest such rate since September 2011, beating estimates of 4.8%. 

The data increased inflationary pressures on UK policymakers and bolstered estimates of a rate hike sooner than previous expected. 

The UK is convening tomorrow to discuss monetary policy in Britain, expected to provide new hints on the timing of the first rate hike during 2022. 

Oil prices fell on Tuesday, as the US dollar rose against most currencies, and ahead of the release of US inventories data.

UK health authorities announced the first death in Britain from the new Covid 19 variant Omicron, and Prime Minister Boris Johnson warned from a new wave of infections.

A study by the University of Oxford revealed that two shots of the current coronavirus vaccines won't be enough to prevent Omicron infection. 

As of 18:57 GMT, the dollar index rose 0.2% to 96.5 points, and hit a high of 96.5 points and a low of 96.1 points.

The American Petroleum Institute will release its preliminary data on US crude inventories later today, and the Energy Information Administration will release its official report on Wednesday.

WTI January futures fell 0.9% to $70.6 a barrel, as of 18:52 GMT.

Brent February futures fell 1% to $73.6 a barrel.

The US dollar rose against most currencies on Tuesday, as investors await the US Federal Reserve's decision.

The Federal Reserve’s meeting will kick off later today, and the decisions to be revealed tomorrow.

The Fed is expected to hold interest rates unchanged near zero, and to cut the bonds purchases program much earlier than expected.

UK health authorities announced the first death in Britain from the new Covid 19 variant Omicron, and Prime Minister Boris Johnson warned from a new wave of infections.

A study by the University of Oxford revealed that two shots of the current coronavirus vaccines won't be enough to prevent Omicron infection. 

As of 19:44 GMT, the dollar index rose 0.2% to 96.5 points, and hit a high of 96.5 points and a low of 96.1 points.