Gold closes higher amid focus on Fed's decision

Gold prices rose on Wednesday, as the US dollar held against most major currencies, and ahead of the US Federal Reserve’s rate decision.

The Federal Reserve will conclude its meeting later today,  to decide on monetary policy and provide clarity over the future of monetary policy in the US, amid expectations to keep the interest rate between 0.0% and 0.25% unchanged. 

This comes following the recent controversy about the rise in the US inflation rate, which impacts goods and services prices.

Fed President Jerome Powell will hold a press conference following the decision to comment on monetary policy.

Data showed that the US building permits index fell 1% in May to 1.68 million permits.

The dollar index rose against a basket of major currencies by less than 0.1% to 90.5 points as of 17:44 GMT, after hitting a high of 90.5 points and a low of 90.4 points.

Gold August futures rose 0.3% or $5, and closed at $1,861.40 an ounce.