MTECHTIPS:-Gold prices trade near 3-month high as Fed begins meeting

MTECHTIPS:-Gold prices trade near 3-month high as Fed begins meeting

Gold rose to the highest level in almost three months in North America trade on Tuesday, as investors awaited the Federal Reserve’s policy meeting, due to begin later in the day. The Fed is expected to keep interest rate on hold at the conclusion of its two-day policy meeting on Wednesday after raising interest rates for the first time in almost a decade in December. Investors were looking to the Fed policy statement for any indication that the bank is considering slowing the path of interest rate increases this year after recent global financial market turmoil. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases. Gold for February delivery on the Comex division of the New York Mercantile Exchange jumped $9.00, or 0.81%, to trade at $1,114.30 a troy ounce by 15:20GMT, or 10:20AM ET. It earlier rose to $1,118.00, the most since November 4. On Monday, gold tacked on $9.00, or 0.82%, as retreating oil prices and steep declines in global equity markets underpinned demand for assets perceived as safer. Prices of the precious metal are up 5% so far this year as investors sought refuge from turmoil in global equity markets. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.

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