Gold gains as investors await the US Fed’s decision

Gold prices rose on Tuesday, supported by a slight decline in the dollar and lower Treasury yields, as investors awaited the US Federal Reserve’s policy meeting for clues on the timing of cutting interest rates.

According to Reuters, by 1030 GMT, the spot price of gold rose 0.2% to $2,035.54 per ounce. US gold futures rose 0.5% to $2,034.90.

“Gold is benefiting from the decline in the dollar and Treasury bond yields, even as markets continue to face the prospect of a federal interest rate cut in March,” said Han Tan, chief market analyst at Xeniti Group.

The dollar index fell 0.1%, making gold more attractive to holders of other currencies. Yields on standard US Treasury bonds reached their lowest level in two weeks at 4.0360%.

The Federal Reserve’s policy decision is scheduled for Wednesday, following its dovish tilt at its December meeting. Markets largely expect the US central bank to leave interest rates unchanged at the end of the two-day meeting.

As for other precious metals, platinum fell 0.5% to $922.10 per ounce, while palladium rose 0.2% to $984.84. Silver fell in spot transactions by 0.5 to $23.09 per ounce.