Gold rises in light of the decline in the dollar and bond yields Ahead of FED meeting

Gold prices rose on Tuesday as the US dollar and bond yields declined, although investors were cautious as markets awaited policy expectations from the Federal Reserve’s two-day meeting starting later Tuesday.

And gold rose in immediate trading 0.5% to $ 1641.43 an ounce by 0548 GMT, after earlier touching its lowest level since October 21.

US gold futures rose 0.1 percent to $1,642.20 an ounce.

The dollar index fell 0.4 percent, strengthening the attractiveness of gold to buyers outside the United States, while the yields of the benchmark 10-year Treasury bonds also fell.

Stephen Innes, managing partner at SBI Asset Management, said comments at the press conference following the Fed meeting may set gold’s next move in the $25-$50 range.

At the end of the meeting on monetary policy, which extends for two days and ends on Wednesday, the central bank is expected to decide on a fourth consecutive increase of 75 basis points in interest rates, and a debate is expected in the bank over when to move towards lower increases.

Gold prices have fallen about 12 percent since they topped the $2,000 an ounce level in March, at a time when the US Federal Reserve raised interest rates at a rapid pace.

As for other precious metals, silver rose in spot trading by 1.9 percent to $ 19.50 an ounce, platinum rose 0.8 percent to $ 932.99, and palladium rose 1.3 percent to $ 1865.40.