Gold prices edged higher on Tuesday, supported by a weaker U.S. dollar, as investors anticipated next week's Federal Reserve policy meeting. The meeting is expected to provide insights into the future direction of interest rates, a key factor influencing gold's appeal as a non-yielding asset.
Spot gold rose by 0.1% to $4,145.22 per ounce by 0347 GMT, while U.S. gold futures for December delivery climbed 0.1% to $4,164.70. The softer dollar made gold more attractive to holders of other currencies, as it reduces the cost of purchasing the precious metal.
The market's focus on the Federal Reserve's upcoming meeting reflects broader uncertainty about the central bank's next moves. Investors are closely watching for any signals that could hint at a shift in monetary policy, which would impact gold's performance.