PRECIOUS-Gold hits over 5-month peak, investors await Fed rate view

Gold prices climbed to a more than five-month peak on Wednesday as a softer dollar supported the bullion while investors awaited cues on the rate hike trajectory of the U.S. central bank from its two-day policy meeting.

Spot gold was up 0.1 percent at $1,250.56 per ounce, as of 0823 GMT, after hitting its highest since July 11 at $1,251.35 earlier in the session.

U.S. gold futures gained 0.1 percent to $1,254.40 per ounce.

“The market is largely in a holding pattern as everyone is focusing on the FOMC (Federal Open Market Committee) meeting... We see prices largely range-bound,” said Benjamin Lu, a commodities analyst with Phillip Futures in Singapore.

“The market has priced in the fourth hike but what remains important is the foreguidance for 2019.”

The Federal Reserve is widely expected to raise interest rates for the fourth time this year, but weak stock markets and slowing global growth may prompt it to tone down its stance on monetary tightening.

Among other precious metals, spot palladium rose 1.2 percent to $1,258.50 per ounce.

Silver was up 0.4 percent at $14.70, while platinum gained 0.7 percent to $792.10.

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