Gold traded narrowly higher in Asia on Tuesday with investors largely on the sidelines ahead of this week’s Federal Reserve meeting widely expected to hike interest rates.
On the Comex division of the New York Mercantile Exchange, gold for February delivery inched 0.08% up to $1,064.20 a troy ounce.
Silver futures for March delivery gained 0.07% to $13.705 a troy ounce, while copper futures for March delivery rose 0.02% to $2.106 a pound.
Overnight, gold futures fell sharply amid a relatively flat dollar, as investors continued to brace for a likely interest rate hike by the Federal Reserve at its two-day meeting starting on Tuesday.
Gold remained near six-year lows from earlier this month when it dipped below $1,050. After opening the year around $1,185 an ounce in January, gold futures have fallen by nearly 10% in 2015. The precious metal is sharply below its 12-month high of $1,303.50 from January 21.
Gold likely gained support at $1,046.20, the low from Dec. 3 and was met with resistance at $1,092.40, the high from Nov. 16.
Investors have had ample time to price in a rate hike after a host of major policymakers, including Fed chair Janet Yellen, began to send strong signals last month that the U.S. central bank could raise short-term interest rates for the first time in nearly a decade.
The Federal Open Market Committee opted to leave rates at near-zero levels earlier this fall amid severe global economic struggles, but will likely reverse course on Wednesday as the headwinds restraining economic growth continue to fade. A succession of strong employment data over the last two months has also prompted a wave of hawkish comments from key FOMC members.