Gold jumps near 2-week high ahead of Fed decisions

Gold prices rose on Wednesday, to resume gains after pausing yesterday on profit-taking, to jump once again near a 2-week high, while the US dollar fell against a basket of major currencies ahead of the Federal Reserve's monetary policy decisions.

Gold prices rose 0.8% to $1,968.75 an ounce, after opening at $1,953.02, with a session-high of $1,949.83.

The yellow metal closed lower by 0.1% yesterday, posting its first daily gain in 3 days, on profit-taking from a 2-week high of $1,972.16.

The dollar index fell 0.2% today, to resume its losses after taking a breather yesterday, which comes in favor of prices of gold and other dollar-denominated metals, making them cheaper for holders of other currencies.

The greenback came under pressure of growing bets that the Fed will announce extra monetary stimulus to support the US economy from further damages by the coronavirus crisis.

The Federal Open Market Committee is wrapping up its policy meeting today, which expected to maintain rates unchanged at 0.25%. 

The US monetary policy statement and interest rate decision will be unveiled at 18:00 GMT, and Fed Chairman Jerome Powell will deliver a speech at 18:30 GMT.

Investors are in search of cues and insight over the future of the Fed's stimulus plans, as it will be the first appearance of Fed Chair Jerome Powell since he unveiled the US monetary policy historic shift at the Jackson Hole Economic Symposium that is aimed at allowing inflation to run above the Fed’s previous target to support the economic recovery from the coronavirus impact..

Gold stocks at the SPDR ETF fell by 0.43 metric tonnes yesterday, with a total at the lowest level since July 29 of 1,247.57 metric tonnes.