Gold Prices Rise Amid Weakening Dollar Ahead of Fed Decision

Gold prices rose on Wednesday as markets awaited the US Federal Reserve's latest interest rate decision. Spot gold gained 1.3% to $4,347.91 an ounce by 1208 GMT after touching a more than one-month low on Monday.

The increase was attributed to a weaker US dollar and lower oil prices. A softer dollar can support gold by making it cheaper for buyers using other currencies, while lower bond yields improve the relative appeal of gold since the metal does not pay interest.

Markets had priced in a 93% chance of at least a 25-basis-point increase in US interest rates, which could weigh on gold. However, continued supply disruptions could keep crude prices and inflation elevated, putting pressure on central banks to maintain tighter monetary policy.