Gold eases on firm dollar, markets await Fed guidance

Gold prices dipped on Wednesday, after posting gains in the previous three sessions, as the dollar gained ground ahead of an interest rate decision by the U.S. Federal Reserve later in the day.
Spot gold was down about 0.1 percent at $1,304.85 per ounce, as of 0428 GMT, trading in a narrow $3 range. U.S. gold futures dipped about 0.2 percent to $1,304.60 an ounce. “The firm dollar and gains in equities are headwinds for gold today and currently the risk appetite is slightly high,” said Benjamin Lu, analyst with Singapore-based Phillip Futures. Asian shares were trading near six-month highs ahead of a policy decision by the U.S. Federal Reserve. The Fed is due to make its rate announcement at 1800 GMT, followed by a news conference by Fed Chairman Jerome Powell. “The market is largely waiting for Fed’s decision and expectations are towards zero rate hikes this year,” Lu said, adding worries surrounding Sino-U.S. trade row might add some pressure on the metal.