Gold futures extended gains on Tuesday as the dollar retreated ahead of the Fed's upcoming review. The Fed is widely expected to pause on rate hikes in the latest review, the decision of which would be made known on Wednesday. Interest rate decisions by several central banks including the Bank of England and Bank of Japan are due in the week.
The Dollar Index which measures the Dollar's relative strength against a basket of 6 currencies has dropped 0.26 percent in the day's trading to touch 104.93. The index ranged between 104.9 and 105.21 as compared with the previous close of 105.20.
Relief at a downward revision in inflation rates in the Euro Area also supported the sentiment for the yellow metal. Data released earlier in the day showed annual inflation in the Euro Area being revised lower to 5.2 percent in the month of August. The reading, which is the lowest since January 2022, was initially estimated at 5.3 percent.
Gold Futures for December settlement gained 0.13 percent to trade at $1,955.90. The day's trading range has been between $1,951.15 and $1,958.15.
Spot Gold added 0.06 percent to trade at $1,934.99 per troy ounce. The day's trading range has been between $1,929.85 and $1,936.88.
