Investing.com - Gold prices edged higher on Tuesday, pulling away from the previous session's three-week lows as the release of mixed U.S. data weighed on the dollar, while investors eyed the conclusion of the Federal Reserve's monthly policy meeting on Thursday.
Comex gold futures were up $1.45 or about 0.11% at $1,312.14 a troy ounce by 08:50 a.m. ET (12:50 GMT), off Monday's three-week trough of $1,308.10.
The Fed was widely expected to leave interest rates unchanged at the conclusion of its two-day policy meeting on Thursday. However the U.S. central bank could give indications on when it plans to begin unwinding its balance sheet, as well as on any future interest rate decisions.
The U.S. Commerce Department reported on Tuesday that the number of housing starts unexpectedly fell in August, while building permits unexpectedly jumped.
Separate reports showed that U.S. import prices posted their biggest gain in seven months in August, while the current account deficit widened more than expected in the second quarter.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, wasdown 0.21%at 91.62, just off a one-week low of 91.57 hitvernight.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
However, the precious metal's gains were limited as concerns over tensions between the U.S. and North Korea remained subdued, although they were susceptible to pick up at any moment.
U.S. President Donald Trump was set to address the United Nations General Assembly for the first time on Tuesday and Pyongyang was widely expected to be on the agenda.
The White House said in a statement that President Trump plans to call for international action to confront North Korea and Iran, which he will portray as twin threats to global security.
Elsewhere on the Comex, silver futures gained 0.36% to $17.23 a troy ounce.