Gold held the biggest gain in almost three months to trade near $1,200 an ounce before Federal Reserve policy makers begin a two-day meeting on interest rates as data showed a mixed outlook for the U.S. economy.
Bullion for immediate delivery traded at $1,201.52 at 11:15 a.m. in Singapore from $1,202.15 on Monday, when prices rallied 2 percent, the biggest gain since Jan. 30, according to Bloomberg generic pricing. Gold in Shanghai advanced.
Gold climbed on Monday as speculation the central bank may wait longer before raising rates helped to send the dollar to a seven-week low. Higher rates spur investors to favor assets with better yield prospects, such as equities. After reports last week showed orders for business equipment fell and purchases of new homes slumped more than forecast, investors will scrutinize Wednesday’s report on first-quarter economic growth.