Gold Recovers Ahead of Fed Decision, But Can It Survive Rate Hike

Gold has made a recovery ahead of the Federal Reserve's (Fed) monetary policy announcement. The precious metal had dropped to its lowest level in over a month earlier this week, but it consolidated gains on Wednesday after advancing during Asian trading hours.

The recovery was supported by a modest pullback in Oil prices and US Treasury yields. However, Gold struggled to build on the intraday advance as traders avoided taking aggressive positions ahead of the Fed's announcement, while a firm US Dollar (USD) also kept the gains in check.

At the time of writing, XAU/USD trades around $4,330 after briefly climbing above $4,350. The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, holds near two-week highs around 99.70.