Gold up as dollar, bond yields dip ahead Fed meeting

Gold prices rose on Tuesday as the US dollar and bond yields tumbled, although investors were cautious as markets awaited policy expectations from the Federal Reserve’s two-day meeting that begins later on Tuesday.

According to “Reuters”, gold gained in spot trading by 0.5% to $1641.43 an ounce by 0548 GMT, after earlier touching its lowest level since October 21. US gold futures rose 0.1% to $1642.20 an ounce.

The dollar index fell 0.4%, which strengthened the attractiveness of gold to buyers outside the United States, while the yields of the 10-year Treasury bonds also declined.

At the end of the meeting on monetary policy, which extends for two days and ends on Wednesday, the central bank is expected to decide on a fourth consecutive increase of 75 basis points in interest rates, and it is expected that a debate will erupt in the bank over the date of the transition towards lower increases.

Gold prices have fallen about 12% since from $2000 per ounce in March, at a time when the US Federal Reserve raised interest rates at a rapid pace.

As for other precious metals, silver rose in spot trading by 1.9% to $19.50 an ounce, platinum rose 0.8% to $932.99, and palladium increased 1.3% to $1865.40.