Investing.com - Gold prices traded slightly lower on Wednesday in Asia as the U.S. dollar edged up. Traders remained cautious ahead of the upcoming policy decision from the Federal Reserve.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell 0.1% to $1,420.65 a troy ounce by 12:45 AM ET (04:45 GMT).

The move came despite the release of weak U.S. economic data overnight. Both June existing home sales and regional manufacturing index for the Richmond area in July came weaker than expected.

Meanwhile, the U.S. dollar rose on reports that in-person trade talks between officials from the U.S. and China might begin as soon as next week.

An agreement between U.S. President Donald Trump and Congressional leaders over the debt ceiling were also cited as supportive for the dollar.

The U.S. dollar index which measures the greenback’s strength against a trade-weighted basket of six major currencies gained 0.1% to 97.458.

A stronger greenback is normally detrimental to the dollar-denominated metal, which becomes more expensive for holders of foreign currencies.

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