Gold zipped higher in Europe on Tuesday, lifted by a stronger euro, as the market braced for an expected increase in US interest rates, while platinum picked up sharply on Asian buying amid supply worries, dealers said.
Spot gold rose to $408.30/409.00 per troy ounce by 1507 GMT, compared with $405.00/405.70 late on Monday in New York.
"The whole precious metals complex traded up on the back of a firmer euro. Gold broke through resistance at $407 when strong fund buying came in together with short covering," a European dealer said.
Bolder moves in gold were checked as investors looked to the US Federal Open Markets Committee (FOMC) meeting, which is expected to raise rates by 25 basis points for the third time this year. The decision is due at 1815 GMT.
The gold market has been focused on the latest nuances in US monetary policy as higher US interest rates tend to draw demand for the dollar and tarnish the allure of gold.
However, players said the expected rate rise had already been factored into prices and that more attention would be paid to the Fed's statement accompanying its decision.
Any hint of a change from the current measured pace of interest rate rises would undermine the US currency, making dollar-priced gold more attractive.
The dollar was on the defensive ahead of the Fed meeting, with the euro firming to $1.2259 after touching a high of $1.2279 earlier.
Platinum sprang back to life earlier amid Asian private investor buying on worries over supply.
A blaze early on Monday at Northam, South Africa's fourth biggest platinum producer, closed the mine and killed nine workers.
On Monday South African unions said wage talks with the world's largest platinum producer Anglo American Platinum (Angloplat) were deadlocked, which might lead to strike action as soon as next week.
Spot platinum was last at $848.00/852.00, up from $835.00/840.00 late in New York on Monday.
Dresdner Kleinwort Wasserstein said the metal could trade up to $865 without significantly changing its technical picture.
Silver firmed in line with buoyant sentiment on gold to $6.31/6.34 from $6.23/6.26 previously, while palladium stood at $205.00/209.00 from $203.50/209.50.
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