Gold Rises as Investors Anticipate Federal Reserve Decision

Gold prices rose on Tuesday, supported by a slight decline in the dollar and falling Treasury yields as investors await the U.S. Federal Reserve's policy meeting for signals regarding the timing of interest rate cuts. By 10:30 GMT, the spot price of gold increased by 0.2% to $2,035.54 per ounce. U.S. gold futures also rose by 0.5% to $2,034.90. Han Tan, chief market analyst at Exinity Group, stated, "Gold benefits from the drop in the dollar and Treasury yields, even as markets continue to face the possibility of rate cuts in March." The dollar index fell by 0.1%, making gold more attractive to holders of other currencies. Yields on U.S. benchmark Treasury securities reached a two-week low of 4.0360%. The Federal Reserve's policy decision is set to be announced tomorrow, Wednesday, after leaning toward easing in the December meeting. Markets largely expect the U.S. central bank to keep interest rates unchanged at the end of the two-day meeting. For other precious metals, platinum fell by 0.5% to $922.10 per ounce, while palladium rose by 0.2% to $984.84. Silver in spot trading dropped by 0.5% to $23.09 per ounce.