Investing.com - With just a day to the next Fed decision on rates, gold longs are making a renewed attempt at recapturing $1,300.
Gold ended April trading lower after facing a stronger dollar for most of the month. But the yellow metal rose Tuesday, the final session of the month, as the dollar slid on bets that the Federal Reserve would hold interest rates steady again at the conclusion of its April meeting on Wednesday. There are also expectations the central bank could be a tad more dovish in its immediate outlook on the U.S. economy.
Spot gold, reflective of trades in bullion, was up $4.11, or 0.3%, at $1,283.93 per ounce by 3:30 PM ET (19:30 GMT).
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, settled the official session up $4.20, or 0.6%, at $1,285.70 per ounce. The benchmark futures contract finished April trading down 0.5%.
With a new GDP print showing another low reading on inflation, the Fed is expected to keep the benchmark interest rate steady at the current target range of 2.25% to 2.50%, according to Investing.com's Fed Rate Monitor Tool.
The dollar index, which measures the greenback against a basket of six currencies, was at 97.22 after striking a one-week low at 97.17. The U.S. currency is down 0.4% on the day, its biggest daily decline in more than three weeks.
“The dollar index backed off and is seeing some significant loss today after hitting a two-year high last Friday and that is supporting the metals market,” Jim Wyckoff, senior analyst with Kitco metals, told Reuters.
While gold longs aim to recapture $1,300 pricing in the near term, analysts at Standard Chartered said they expected gold prices to consolidate lower and average $1,285 per ounce in second quarter. They only anticipate the yellow metal to average $1,325 per ounce in the fourth quarter.
Palladium recovered after fallilng almost 7% in the previous session, remaining below the key $1,400 perch while retaining its mantle as the world's priciest traded metal. Spot palladium was up $18.05, or 1.3%, at $1,388.60 an ounce.
Trades in other Comex metals as of 3:30 PM ET (19:30 GMT):
Palladium futures up $21, or 1.5%, at $1,383 per ounce.
Platinum futures down $8.05, or 0.9%, at $893.25 per ounce.
Silver futures up 6 cents, or 0.4%, at $14.99 per ounce.
Copper futures up 1 cent at $2.91 per pound.