Gold is hovering above $2,000 ahead of the Fed’s rate decision

Gold prices hovered above the $2,000 mark on Wednesday, as investors await the Federal Reserve’s decision on interest rates due later on Wednesday.

Gold settled in spot transactions at $ 2016.29 an ounce by 0140 GMT, after rising by more than one percent in the previous session.

US gold futures rose 0.1% to $2,026.10.

The Federal Reserve’s interest rate decision is due at 1800 GMT, amid broad expectations that it will raise it by 25 basis points.

Gold is usually viewed as a hedge in times of rising inflation and economic turmoil, but high interest reduces the attractiveness of the non-return metal.

As for other precious metals, spot silver fell 0.2 percent to $25.33 an ounce, platinum fell 0.4 percent to $1061.53, while palladium increased 0.4 percent to $1434.62.