Gold held gains in subdued trading as investors waited for the Federal Reserve's rate decision, with US policymakers expected to deliver another hike.
Rates on swap contracts continued to price in a quarter percentage-point hike on Wednesday, though the greater focus will be on any clues on whether there will be more monetary tightening later this year. Bond traders see a 50% chance of another 25-basis point increase after July. Higher rates are typically negative for bullion, which doesn't yield any interest.
The metal saw mixed support from Treasuries, with the yield on two-year notes falling while the 10-year climbed. The dollar halted a five-day advance Tuesday, easing pressure on gold, which usually moves in the opposite direction to the greenback.
Spot gold was little changed at $1,965.32 an ounce as of 7:55 a.m. in Singapore, after advancing 0.5% in the previous session. The Bloomberg Dollar Spot Index was steady. Silver slipped, palladium edged higher and platinum was flat.
Source : Bloomberg
