Gold prices exhibited limited movement Wednesday as investors adopted a cautious stance ahead of the Federal Reserve's policy meeting later today, with tariff-related uncertainty compounding market jitters. The White House’s plans to implement previously announced tariffs on Canada and Mexico starting February 1st could strongly affect the market. In this regard, traders could remain attentive to new developments.

In the meantime, market participants are focused on the Fed's first policy decision this year. The Fed is expected to maintain current interest rates unchanged. However, investors will scrutinize Chair Jerome Powell's communication for responses regarding President Trump's recent calls for additional rate cuts and the Fed’s outlook on monetary policy. While Powell could emphasize data dependency, markets could react to any comment on inflationary pressures stemming from expansive potential fiscal policies and new trade restrictions. Gold could come under pressure if the Fed signals a willingness to maintain elevated rates longer than anticipated to counterbalance expansionary policies.