Gold posted a third straight gain before the conclusion of the Federal Reserve meeting where policy makers are widely expected to cut interest rates Wednesday.
The Fed meeting comes amid increased volatility in the U.S. money markets that raises the odds for the central bank to expand its balance sheet. From 2008 to 2011, the Fed bought $2.3 trillion of debt, sending gold to a record that year.
Bullion prices also advanced as investors weighed the impact of President Donald Trump’s plan to expand sanctions on Iran. The metal has risen in the past two sessions after an attack on critical oil facilities in Saudi Arabia that the kingdom said was “unquestionably” sponsored by Iran.
Gold futures for December delivery settled 0.2% higher at $1,515.80 an ounce at 1:31 p.m. on the Comex in New York, after slipping as much as 0.4% earlier. Silver futures fell 1.2% on the Comex, while platinum and palladium declined on the New York Mercantile Exchange.
Source : Bloomberg