Gold edges up as traders brace for Fed rate decision

Gold prices ticked up on Tuesday supported by a slightly weaker dollar and lower Treasury yields as investors primed for the US Federal Reserve's policy meeting for updates on the timing of its interest rate cuts, reports Reuters.
Spot gold was up 0.1 per cent at $2,032.70 per ounce by 1239 GMT. US gold futures rose 0.4 per cent to $2,032.60. "Gold is benefitting from the moderating U.S. dollar and Treasury yields, even as markets continue to wrestle with the odds for a Fed rate cut in March," said Han Tan, chief market analyst at Exinity Group.
The dollar index fell 0.2 per cent, making gold more appealing to other currency holders. The yields on the benchmark US Treasury note reached a two-week low of 4.0360 per cent.
"Gold could falter back towards the psychologically-important $2k mark if Fed Chair Jerome Powell pushes back against expectations for a policy pivot starting in March and bullion may climb beyond $2050 if Powell fails to deter markets from believing that a Fed rate cut in March is likelier than not," Tan added.