Gold investors focused on the messages to be given about the Fed’s interest rate decision and the interest rate path afterwards.
While investors were waiting for the Fed’s interest rate decision, gold entered the Fed day by protecting its gains.
Spot gold is at $1,970 per ounce.
While pricing continues that swap contracts will increase by 25 basis points on Wednesday, markets are expected to focus more on signs of monetary tightening in the meetings after July this year.
Bond investors see a 50 percent chance for an additional 25 basis points increase after the July meeting.
The precious metal received mixed support on the bond side. While 2-year bond yields decreased, 10-year bond yields increased. On the dollar side, the five-day rally came to an end on Tuesday, while the pressure on gold, which generally moves in the opposite direction of the dollar, eased.