Gold Rises on Weaker Dollar Ahead of Fed Rate Decision

Gold prices rose on Wednesday due to a weaker US dollar and lower oil prices. Spot gold gained 0.7% to $4,324.36 per ounce as traders priced in a 93% chance of at least a 25-basis-point US rate hike.

The Federal Reserve's interest rate decision is set for 1800 GMT, with Fed Chair Kevin Warsh's press conference following shortly after.

Nikos Tzabouras, senior market analyst at Tradu.com, said gold was benefiting from easing dollar strength and a pullback in US bond yields. However, he noted that the near-term technical bias remains to the downside and gold's direction would depend on the Fed's decision.

The Bank of Japan is also due to make a policy decision this week, with interest rates expected to rise to a 31-year high on Friday.