Ammon News - Gold prices inched higher on Wednesday, buoyed by a retreat in the dollar, while investors held back from placing large bets ahead of the U.S. Federal Reserve's policy decision later in the day.

Spot gold edged 0.1% higher at $3,393 an ounce, as of 0517 GMT. U.S. gold futures gained 0.1% to $3,411.60.

The dollar index slipped 0.2% against its rivals, making gold more expensive for other currency holders.

"Gold fluctuated as investors tracked the escalation of risk in the Middle East. Tepid US reports on retail sales, housing and industrial output bolstered the case for the Fed to cut rates later this year," analysts at ANZ said in a note.

Iran and Israel launched new missile strikes at each other on Wednesday as the air war between the two longtime enemies entered a sixth day despite a call from U.S. President Donald Trump for Iran's unconditional surrender.

Meanwhile, the U.S. central bank is widely expected to leave interest rates unchanged at the end of its policy meeting later in the day.

Elsewhere, spot silver was flat at $37.25 per ounce, platinum rose 0.4% to $1,267.88, while palladium gained 0.2% to $1,053.57. Reuters