Gold prices edged higher on Wednesday as bargain hunters stepped in after bullion dropped to a three-week low in the previous session, with investors now awaiting the Federal Reserve’s rate decision later in the day.
Spot gold was up 0.7% at $3,977.49 per ounce as of 0114 GMT after dropping to its lowest since October 7 on Tuesday.
U.S. gold futures for December delivery rose 0.2% to $3,991.70 per ounce.
The Fed is widely expected to cut interest rate at the end of its policy meeting on the day, and investors are watching out for any forward-looking language from Fed Chair Jerome Powell.
Meanwhile, the European Central Bank is expected to leave rates unchanged at its policy meeting on Thursday.
On the trade front, focus will be on any developments in talks between Washington and Beijing ahead of U.S. President Donald Trump and his Chinese counterpart, Xi Jinping’s, meeting in South Korea on Thursday.
Non-yielding gold thrives in a low-interest-rate environment and during economic uncertainties.
Gold prices have climbed about 52% year-to-date, reaching an all-time peak of $4,381.21 on October 20, bolstered by geopolitical and economic uncertainties, rate-cut bets and sustained central bank buying.
Meanwhile, the U.S. dollar hovered near a one-week low versus major peers ahead of a much-anticipated Fed rate cut.
U.S. private payrolls increased by an average of 14,250 jobs in the four weeks ending October 11, per the ADP National Employment Report’s inaugural weekly preliminary estimate.
Elsewhere, spot silver gained 0.7% to $47.36 per ounce, platinum rose 0.4% to $1,593 and palladium climbed 1.7% to $1,417.22.
