Gold scaled a one-week peak on Tuesday as the dollar was under pressure ahead of a U.S. Federal Reserve meeting, with investors awaiting clarity on the future course of monetary tightening by the central bank.
The Federal Open Market Committee (FOMC) is widely expected to raise interest rates at its two-day meeting starting later in the day, but the focus will be on its outlook for 2019.
Spot gold was up 0.22 percent at $1,248.52 per ounce, as of 0813 GMT. Prices touched their highest since Dec. 11 at $1,249.04 earlier in the session.
U.S. gold futures were flat at $1,252.30 per ounce.
Meanwhile, the dollar was fragile in Asian trade as markets speculated growth worries would prompt the Federal Reserve to signal a pause to its monetary tightening cycle at this week’s meeting.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.