Gold Rises as Dollar Weakens Ahead of Fed Policy Outcome

by Reuters

Gold rose for a third straight session on Wednesday as weaker than expected U.S. data weighed on the dollar ahead of the Federal Reserve’s monetary policy decision later in the day.

The Fed is likely to keep interest rates steady, with focus resting squarely on the tone of its statement and any hints on the timing of any future increases. The U.S. central bank raised rates in December for the first time in nearly a decade.

“Overall, FOMC (Federal Open Market Committee) is probably not going to create a major reaction, data recently has definitely not supported any big change towards a more hawkish stance, which should help gold around current levels,” said Saxo Bank senior manager Ole Hansen.

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