Gold consolidates above $1,800 ahead of Fed's decision

Gold prices rose on Wednesday, extending gains for the second straight day, rising above the $1800 barrier, as the US dollar fell against a majority of rivals, and ahead of the Federal Reserve’s decisions.

Gold prices rose 0.5% to $1,807.38 an ounce, after opening at $1,798.23, and hit a low at $1,797.97.

Gold closed higher by 0.1% yesterday, within recovery from a 2-week low at $1,789.68 an ounce.

The dollar index fell 0.1% today, to head for the third straight loss against a majority of rivals, which lifts demand for dollar-denominated metal prices. 

The greenback is falling due to risk aversion ahead of the Federal Reserve’s decisions.

The Federal Open Market Committee will decide today on the monetary policy, expected to maintain rates at near zero, the and the assets purchases program at $120 billion.

At 18:00 GMT, the Federal Reserve's interest decision will be released, and Fed Chair Jerome Powell will deliver a speech at 18:30 GMT.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since May 13 at 1,025.64 metric tonnes.