Gold rose on Wednesday amid buying interest after the precious metal fell to its lowest in three weeks during the previous session, as investors now await the U.S. Federal Reserve's decision on interest rates later in the day. Spot gold gained 0.7% to $3,977.49 per ounce by 01:14 GMT, after falling to its lowest since Oct. 7 on Tuesday. U.S. gold futures for December delivery rose 0.2% to $3,991.70 per ounce. The U.S. central bank is widely expected to cut interest rates at the conclusion of its meeting later today. Meanwhile, the European Central Bank is expected to keep interest rates steady at its meeting tomorrow. On the trade front, focus is on any developments in talks between Washington and Beijing ahead of a meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping in South Korea tomorrow. Gold, which does not yield interest, thrives in low-interest rate environments and during times of economic uncertainty. Gold prices have risen about 52% so far this year to an all-time high of $4,381.21 on Oct. 20, supported by geopolitical and economic uncertainty, bets on rate cuts, and continued central bank buying. The dollar index, which tracks the greenback against a basket of six major currencies, was near a one-week low ahead of the interest rate decision. Among other precious metals, silver rose 0.7% to $47.36 an ounce, platinum gained 0.4% to $1,593, and palladium added 1.7% to $1,417.22.
