Gold Prices Soar Ahead of FOMC Meeting, but Hawkish Outlook Looms

Gold prices have been rising ahead of the Federal Reserve's (FOMC) meeting, with a gain of over 1.2% to $4,345 intraday.

The strengthening dollar and higher US Treasury bond yields had weighed on gold in the past three weeks but retreated once the greenback weakened.

Expectations are that the federal funds rate will rise from 3.75% to 4%, a move that would stabilize the dollar and lower long-term government bond yields, making it favorable for gold.

However, if the FOMC forecasts three rate hikes in its updated projections, the greenback could surge, causing a sell-off in gold prices.