Gold prices rose slightly in early trading on Wednesday, benefiting from a decline in US Treasury yields and a slight drop in the dollar index, amid heightened anticipation in the markets for the Federal Reserve's upcoming monetary policy statement.
By 02:36 GMT, spot gold had risen 0.1% to $3,329.27 an ounce, while U.S. gold futures had climbed by the same percentage to $3,326.90.
This move comes as US 10-year bond yields stabilize near their lowest levels in a month, while the dollar index has retreated from its highest level in more than four weeks.
Kelvin Wong, senior analyst at OANDA, noted that markets may see a more hawkish stance from the US Federal Reserve, despite continued political pressure from President Donald Trump to lower interest rates.
Gold is considered a traditional safe haven during periods of economic uncertainty or low interest rates, as lower returns reduce the opportunity cost of holding gold, which does not generate returns.
In the context of other precious metals, silver fell 0.1% to $38.14 an ounce, platinum dropped 0.6% to $1,386.31, while palladium rose 0.4% to $1,262.99.
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