Dollar Weakness Pushes Gold Prices Higher Ahead of Fed Decision

Gold prices have inched up by about 0.3% to $4,038.71 per ounce as the dollar weakens ahead of the Federal Reserve's policy decision.

The Fed's meeting is set to conclude today, and markets are bracing for a verdict on interest rates. While investors have roughly a two-thirds chance of a rate pause and about a one-third chance of a 25 basis points hike, higher interest rates tend to hurt gold by increasing the cost of holding non-yielding assets.

Despite this, the anticipated cautious stance from the Fed is currently limiting downward pressure on gold. Meanwhile, geopolitical tensions in the Middle East have resurfaced, with the US military intercepting ballistic missiles attributed to Iran.