Gold prices rose on Tuesday as the dollar reversed lower ahead of the Federal Reserve's policy decisions. 

Analysts expect the Fed to hold interest rates unchanged at this week’s meeting. 

However, investors expect the Fed to release detailed forecasts for growth, inflation and interest rates to gauge the impact of US President Donald Trump on policies. 

Investors continue to be concerned about the ongoing global trade war and its impact on businesses and sales.

Otherwise, the dollar index fell 0.1% as of 19:53 GMT to 103.2, with a session-high at 103.6, and a low at 103.2.

On trading, gold spot prices rallied 1.3% as of 19:54 GMT to $3043.6 an ounce.

US stock indices fell on Tuesday after a two-session decline before the Federal Reserve’s policy meeting. 

Analysts expect the Fed to hold interest rates unchanged at this week’s meeting. 

However, investors expect the Fed to release detailed forecasts for growth, inflation and interest rates to gauge the impact of US President Donald Trump on policies. 

Investors continue to be concerned about the ongoing global trade war and its impact on businesses and sales.

On trading, Dow Jones fell 0.4%, or 171 points as of 14:35 GMT to 41,669 points, while S&P 500 dropped 0.9%, or 55 points to 5620 points, as NASDAQ lost 1.7%, or 309 points to 17,501 points. 

Bitcoin lost 2.0% on Tuesday amid a tepid atmosphere in the market with US 10-year treasury yields surging.

Later today, the Federal Reserve will commence its two-day policy meeting to decide on appropriate monetary policy tools, with the bank widely expected to hold rates unchanged. 

Prices

Bitcoin fell 2.0% at Bitstamp today to $82,259, with a session-high at $83,989.

On Monday, bitcoin rose 1.8% as US stock indices rebounded on Wall Street.

Crypto Market Value 

The market value of cryptocurrencies fell by over $55 billion to a total of $2.790 trillion.

US Treasury Yields 

US 10-year treasury yields rose 0.5% on Tuesday to near multi-week highs, in turn hurting the risk appetite.

The developments come amid concerns that Donald Trump’s aggressive trade policies could cause a recession in the world’s largest economy.

The Fed

Later today, the Federal Reserve will convene to discuss policies, with markets expecting no changes in interest rates.

Data released last week showed US consumer prices slowed down more than expected in February, bolstering the case for a Fed rate cut in the first half of the year.

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March stood at just 1%, while the odds of a May rate cut stood at 30%.

The odds of a Fed June 0.25% interest rate cut stood at 75%.

Gold prices rose in European trade on Tuesday, expanding the gains for the second straight day and hitting a record high at $3000 as haven demand increases while the US dollar declines. 

The developments come ahead of the Federal Reserve’s policy meeting later today, widely expected to hold rates unchanged.

Prices

Gold prices rose 0.9% today to $3028 an ounce, a record high, with a session-low at $2999.

On Monday, gold rose 0.55%, the fourth profit in five days, hitting a record high at $3000.

The Dollar

The dollar index fell 0.2% on Tuesday on track for the third straight loss in a row, and about to plumb a five-month trough against main rivals.

A  weaker dollar makes greenback-denominated gold futures more attractive to holders of other currencies.

Recent data showed US consumer confidence fell to 2-1/55 year lows, with a smaller than expected rise in retail sales in new signs of a potential economic slowdown.

The Fed

Later today, the Federal Reserve will convene to discuss policies, with markets expecting no changes in interest rates.

Data released last week showed US consumer prices slowed down more than expected in February, bolstering the case for a Fed rate cut in the first half of the year.

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March stood at just 1%, while the odds of a May rate cut stood at 30%.

The odds of a Fed June 0.25% interest rate cut stood at 75%.

SPDR

Gold holdings at the SPDR Gold Trust rose 0.86 tons on Monday, the fifth increase in a row to a total of 907.27 tons, the highest since February 25.