Investing.com – Gold prices remained close to session lows as ongoing demand for the dollar pressured the yellow metal to give up some of its intraday gains ahead of a Federal Reserve interest rate decision.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange fell by $0.50 or 0.05%, to $1306.10 a troy ounce. The precious metal retreated from an intraday high of $1,312.50.
The dollar rally continued Wednesday, pressuring gold prices, ahead of a widely expected unchanged Federal Reserve interest rate decision due 2 p.m. ET.
The interest rate decision will be accompanied by a monetary policy statement expected to reflect the upbeat inflationary environment, which could further cement expectations for a June rate hike.
Data earlier this week showed the Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 1.9% in the 12 months through March, just shy of the Fed’s 2% target.
According to investing.com’s fed rate monitor tool, 94% of traders expect the Fed to leave rates unchanged on Wednesday. The prospect of a fourth rate hike in December, however, was just under 40%.
Also keeping a lid on demand for the yellow metal was easing geopolitical tensions as U.S. trade representatives headed to Beijing for talks to avert a trade war between the world’s two largest economies.
In other precious metal trade, silver futures rose 1.57% to $16.38 a troy ounce, while platinum futures gained 0.12% to $895.30 an ounce.
Copper rose 0.91% to $3.065.
