Gold gains ahead of U.S. Fed policy decision

Gold prices rose earlier on Wednesday in Asia as investors awaited the results of the U.S. Federal Reserve policy meeting that would be announced later in the day. The meeting discussed whether the U.S. central bank would continue to keep interest rates low while easing inflation.

Gold futures inched up by 0.11%, trading at $1,968 per ounce at 12:35 AM ET (05:35 AM GMT).

Meanwhile, the Dollar retook some lost ground after a string of losses after investors were led to believe that the Fed policy decision will extend its policy of low interest rates.  

Gold has benefitted from a weakening Dollar, with the Greenback seeing a record slump on Wednesday, which helped pull the yellow metal out of negative territory.

Other factors that affected gold prices include the U.S. Democrats pushing to delay the U.S. Congress’ October recess in order to establish a new COVID-19 aid bill and U.S. President Donald Trump declaring that a COVID-19 vaccine would be ready in a few weeks. However, Trump’s pronouncement was met with a certain amount of skepticism.