Gold futures for August delivery at the New York Merchantile Exchange’s Comex division rose 0.3% to $ 1,424.30 by 12:45 AM ET.
Markets widely expect the Fed to cut rates by at least 25 basis points this week. Some traders have previously speculated the central bank to cut rates by 50 basis points, but the chances of that happening are diminished after the US. Second-quarter GDP came out better than expected.
Separately, the Bank of Japan kept its rates unchanged today as expected. The Bank of England is also expected to meet later this week.
“More important than what happens on Wednesday is what the Fed market expects in subsequent action in September and beyond,” said Investing.com senior commodity analyst Barani Krishnan. “Here may be the real frustration for gold cravings, as the Fed may not be as lovable as many expect.”
Concerns overcoming Brexit were in focus, as the British government overnight said it assumed a deal without a deal would take place after the EU “stubbornly” refused to renegotiate the terms of the draft deal made by former Prime Minister Theresa May.