Gold prices edged up marginally on Tuesday as the U.S. dollar stayed mostly sluggish amid simmering trade war fears and ahead of Fed’s rate decision.
The U.S. Federal Reserve, scheduled to announce its monetary policy on Wednesday, is expected to raise interest rate by 25 basis points.
The accompanying statement that would reveal the bank’s views on the economy and its forecasts for coming years, and the Fed Chief Jerome Powell’s press conference later in the day are expected to provide clues about future rate hikes.
The dollar index, which eased to around 93.60, edged up to 93.75 subsequently and was down by about 0.10% from previous close.
Gold futures for December ended up $0.70, or 0.06%, at $1,205.10 an ounce. On Monday, gold futures ended up $3.10, or 0.30%, at $1,204.40 an ounce.
Silver futures for December ended up $0.152, at $14.493 an ounce.
Copper futures for December declined by $0.0125, to $2.8235 per pound.
Gold prices are holding above $1,200 an ounce for six straight days now, despite losing ground on two sessions during this period.
Gold prices had dropped to around $1,180 by mid-August, from $1,365.40, the highest level in the current calendar year.