(Reuters) – The price of gold rallies on Wednesday thanks to a weakening dollar, which is depreciating in anticipation of the outcome of the Federal Reserve System (FRS) meeting.
The spot gold price rose 0.47% to $ 1,964.75 per troy ounce by 13:57 GMT.
The Fed is expected to release slightly more optimistic economic outlooks at the end of its meeting on Wednesday and will again promise to keep interest rates low as the world's largest economy recovers from its worst recession in decades.
The regulator will publish the results of the meeting at 21.00 Moscow time, a press conference by Fed Chairman Jerome Powell will begin at 21.30 Moscow time.
“What we are likely seeing in gold is the expectation that the Fed will be more dovish than before, and the realization that we are seeing slightly more inflationary pressures than expected,” said OANDA analyst Craig Earlam.
The dollar index declines on Wednesday, making gold more attractive to holders of other currencies.
Palladium fell 1.23% to $ 2,380.39 an ounce, while silver added 0.43% to $ 27.35 an ounce. The platinum price dropped 0.3% to $ 975.32.
(Nakul Iyer and Bridgesh Patel in Bangalore. Translated by Vladimir Sadykov)