Gold prices rose today, to extend gains for the third straight day, on the US dollar drop against a basket of currencies, and ahead of the US Fed monetary policy decision, which will be the last during this year.
Gold prices rose by 0.3% to $1,467.91, after opening at $1,463.80, and hit a session-low of $1,462.67.
The yellow metal gained 0.2% yesterday, to post its second straight daily gain buoyed by the US dollar's drop.
The US dollar index fell by 0.1% against its rivals, to deepen its losses for third straight day, as sell-off continued on the US currency against a basket of major currencies.
This drop in US dollar is due to investors' risk aversion after the release of weak Chinese data and the lingering uncertainty about the US-China trade talks while the date of the US tariffs decision approaches on $156 billion worth of Chinese goods, which is due Dec.15.
The last US Federal Reserve's meeting during 2019 will conclude and the rate decision will be unveiled later today, amid increased market's bets for the Fed to hold interest rates unchanged at 1.75%, and settle for the three rate cuts of this year.
The US interest rate decision, the monetary policy statement, and the economic outlook statement will be issued by 19:00 GMT, and Jerome Powell, the Federal Reserve Chairman, will speak by 19:30 GMT.
At 19:00 GMT the US Fed will unveil its interest rate decision, the monetary policy statement, and the Fed's economic outlook, and will be followed by Fed Chair Jerome Powell's speech by 19:30 GMT.
Markets will be on lookout for strong hints about the chances of the Fed to ease the monetary policy and make further rate cuts during 2020.
Gold holdings at the SPDR Gold Trust, fell yesterday by 0.3 metric tonnes, to a total of 885.93 mt (the lowest since Sept.18).