Economic activity increased slightly in November after little change in preceding months, and US businesses grew more upbeat about demand prospects, the Federal Reserve said in its latest Beige Book survey.

The U.S. expanded steadily in November, but hiring was subdued and inflation was still a nagging problem in some parts of the economy, a new Federal Reserve survey found.

Markets are still pricing in another cut in interest rates of 25 basis points when the Fed meets in two weeks. Unless things change or economic data – such as Friday’s monthly jobs report for November – defies expectations, the Fed’s slow but steady shift downward on interest rates is likely to continue.

The Federal Open Market Committee is most likely to cut interest rates again to 4.25% to 4.5% on December 18 according to fixed income markets.

St. Louis Federal Reserve President Alberto Musalem said on Wednesday he expects the U.S. central bank will be able to continue to cut interest rates but warned the pace of future actions has grown less clear.

Gold prices inched lower on Wednesday as markets awaited U.S. jobs data and comments from Federal Reserve Chair Jerome Powell for cues on the interest rate cut trajectory ahead of the central bank meeting this month.

Gold futures were edging lower in early trade, but remain in a narrow range as traders await key U.S. data later this week for more cues on the Federal Reserve's interest-rate cut decision. Futures fell 0.