SINGAPORE : Spot gold rose 0.1 percent to $4,061.86 an ounce, following a gain of more than one percent on Tuesday. US gold futures for December delivery settled at $4,075.60 an ounce.

Markets are awaiting the Federal Reserve’s decision, scheduled for 18:00 GMT, as well as personal consumption expenditures (PCE) data due on Thursday. The PCE price index is a key inflation indicator monitored by the central bank as it seeks to achieve its 2 percent inflation target.

Traders largely expect the Fed to leave interest rates unchanged at its meeting. However, markets are pricing in an 84 percent probability of a rate hike in December, according to CME Group’s FedWatch tool.
Higher interest rates tend to weigh on gold, which does not generate interest income, by increasing the opportunity cost of holding the precious metal.

Elsewhere in the precious metals market, spot silver rose 0.1 percent to $54.38 an ounce, while platinum fell 0.2 percent to $1,537.58 an ounce. Palladium gained 0.5 percent to $1,031.42 an ounce.

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