Investing.com - Gold futures were little changed near a three-month high in North America trade on Wednesday, as investors stuck to the sidelines ahead of the Federal Reserve’s policy statement due later in the day.
Gold for February delivery on the Comex division of the New York Mercantile Exchange dipped 40 cents, or 0.04%, to trade at $1,120.00 a troy ounce by 13:40GMT, or 8:40AM ET. A day earlier, gold rose to $1,123.20, the most since November 3, before ending at $1,120.20, up $14.90, or 1.35%.
The Federal Reserve is not expected to take action on interest rates at the conclusion of its two day policy meeting at 19:00GMT, or 2:00PM ET, Wednesday, but it will be watched for any change in tone about the economy or future rate hikes.
Many in the market anticipate the pace of future increases to be gradual due to the recent turmoil in global financial markets, as well as concerns over tepid growth overseas and indications that U.S. economic growth stalled in the fourth quarter.
A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.29% at 98.78.
Prices of the precious metal are up more than 5% so far this year as investors sought refuge from turmoil in global equity markets. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Also on the Comex, silver futures for March delivery shed 6.9 cents, or 0.47%, to trade at $14.49 a troy ounce during morning hours in London. Prices jumped to $14.58 on Tuesday, the highest since December 7.
Elsewhere in metals trading, copper edged higher to hit a three-week high as expectations for fresh central bank stimulus in Europe and Japan supported demand for growth-linked assets.
Despite recent gains, copper is down 4% so far this year as investors slashed holdings of the red metal amid persistent worries over an economic slowdown in China. The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.