Gold rises as dollar retreats, with all eyes trained on Fed

LONDON — Gold rose on Tuesday as a retreat in the dollar sparked a rebound after the previous day’s 1% slide, but moves were muted as traders awaited the outcome of this week’s US Federal Reserve policy meeting.

 
Gold has fallen 10% this year, largely on expectations that the Fed is set to hike rates for the first time in nearly a decade. Rising rates increase the opportunity cost of holding non-yielding bullion.

Gold rose as markets recover from Paris attacks

Gold briefly rose on Monday to its highest in a week at $1,097.90 an ounce after the attacks prompted a flight to safety among investors, but it failed to maintain those gains.

 

The metal is now coming under pressure from expectations that the US Federal Reserve is set to raise US interest rates for the first time in nearly a decade, lifting the opportunity cost of holding non-yielding gold while boosting the dollar.