Gold is trading above the $1,200 price level at the start of the FOMC meeting in Washington.
The U.S. Federal Reserve is highly anticipated to announce a 25 basis points rate lift on Wednesday.
The move has already been priced in, but gold traders will be on the look out for insights on the economic projections and Chair Jerome Powell’s speech.
Gold has struggled as a safe haven under trade war concerns as investors have flocked to the safety of the US dollar, putting downward pressure on the yellow metal.
A neutral to dovish speech from Chair Powell could boost gold prices, specially if it comes from more mentions of trade turmoil risks.
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Alfonso Esparza