Gold rose 1 percent on Tuesday after two sessions of losses, as the dollar and shares eased ahead of a US Federal Reserve policy meeting that may push back expectations for when US interest rates will start to rise. The Fed started its first two-day policy meeting of the year on Tuesday and investors expect it to acknowledge the uncertain global outlook and stick to its promise to be patient on tightening.
Spot gold was up 1 percent at $1,293.06 an ounce by 2:27 pm EST (1927 GMT). The metal had fallen 1.6 percent in the previous two sessions on strong equities and uncertainties over the Greek election. Gold hit a five-month high of $1,306.20 on Thursday. US gold futures for delivery in February settled up 1 percent at $1,291.70 an ounce as February options expired with heavy open interest around $1,275, $1,280 and $1,300, traders said. Among other precious metals, spot silver was up 0.9 percent at $18.03 an ounce. Palladium was up 0.1 percent at $781 an ounce, while platinum rose 0.9 percent to $1,259.25 an ounce.