Gold rises as traders await indications from the Fed

Gold rose, but its movements remained within a narrow range on Wednesday, as dealers held back from big bets ahead of the US Federal Reserve’s policy decision later in the day.

Spot gold rose 0.3 percent to $1,969.51 an ounce by 0747 GMT.

US gold futures rose 0.4 percent to $1,971.

“The broader markets are eyeing a significant rate pause for the remainder of the year, while Fed officials could go in the opposite direction by leaving the door open for another hike in September or November,” said Yip Jun Rong, market analyst at IG.

Gold is highly sensitive to rising interest rates because it increases the opportunity cost of holding non-yielding metal.

As for other precious metals, there was no significant change in silver prices, which recorded $24.68 an ounce, platinum rose 0.3 percent to $967.58, and palladium fell 0.2 percent to $1281.70.