Gold bounces from 2-week low on buying ahead of Fed meeting

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Gold was firm on Tuesday, having recovered from over a two-week low hit in the previous session, as traders waited to gauge the path of USA monetary policy for the rest of the year from the two-day Federal Reserve meeting that kicks off later in the day. In the previous session, it touched $1,307.51/oz, its lowest since March 1.

At the Multi Commodity Exchange, gold for delivery in April month fell by Rs 49, or 0.16 per cent, to Rs 30,175 per ten grams in business turnover of 66 lots. All 104 analysts polled by Reuters expected the Fed would raise rates to between 1.5 percent and 1.75 percent on Wednesday.

European Central Bank policymakers are shifting their debate to the expected path of interest rates as even some of its most dovish rate setters accept that lucrative bond buys should end this year, sources close to the discussion said.

After the meeting, Fed Chairman Jerome Powell will hold a his first press conference as the central bank's new chief.

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After its most recent top around $1,334, gold is now above $1,309.

Gold is highly sensitive to rising USA interest rates, becoming less attractive to investors as it does not bear interest.

On similar lines, the yellow metal for delivery in June was trading lower Rs 82, or 0.27 per cent, to Rs 30,533 per ten grams in 20 lots.

Platinum was almost unchanged at $952.70 per ounce after hitting its lowest since January 3 on Monday. Palladium declined 0.28% to $987.25/oz.

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