Investing.com – Gold prices edged higher on Tuesday, as the dollar dipped ahead of the two-day Federal Reserve meeting beginning later in the day, at which it was widely expected to deliver its third rate hike this year.
December edged up 0.12% to $1,205.70 by 08:05 AM ET (12:05 GMT) on the Comex division of the New York Mercantile Exchange.
Gold pushed higher as the dollar slid, with the , which measures the greenback’s strength against a basket of six major currencies, down 0.21% to 93.66.
Prices of the yellow metal looked likely to remain rangebound until after Wednesday’s when the U.S. central bank is expected to raise interest rates by a quarter point and offer some clues on the future path of monetary policy.
Higher interest rates increase bond yields, making non-interest bearing gold less attractive to investors. They also tend to boost the dollar, making dollar-priced gold more expensive for holders of other currencies.
Trade concerns remained to the fore after the on each other’s imports on Monday, escalating a trade spat which markets fear could act as a drag on global growth.
Elsewhere in metals trading, December edged up 0.13% to $14.35 a troy ounce, while January was trading at $835.40, up 0.29% for the day.
Among base metals, December was down 0.18% at $2.80.
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Source: Investing.com
