Gold advanced to trade near a 13-month high on Tuesday, supported by a struggling dollar and hopes the US Federal Reserve will not raise interest rates as soon as next week's meeting. The non-interest yielding metal could test $1,300 an ounce, more than 2 percent higher than its current level, if the Fed stands pat at the March 15-16 policy meeting, said Daniel Ang, analyst at Phillip Futures in Singapore.
"A lot of traders are trying to anticipate a 'no rate hike' scenario, causing a bit of an increase in gold," said Ang. A shaky global economy and the recent strength in the US dollar, which had curbed US exports, could convince the Fed to hold rates steady, he added. Spot gold was up 0.2 percent at $1,269.46 an ounce by 0644 GMT, not far from Friday's peak of $1,279.60, its highest since February 3, 2015. US gold for April delivery gained 0.5 percent to $1,270.50 an ounce.
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