Gold settles higher as dollar backs off 1-1/5 year peak

Gold futures tilted higher in Asian trade off December 4 lows for the third straight session as the dollar backed off June 2017 highs, ahead of US housing data later today. 

As of 03:59 GMT, gold futures due in February 15 rose 0.05% to $1,252.40 an ounce off two-week lows, while the dollar index shed 0.05% to 97.05 against a basket of major rivals. 

Now investors await US housing data, with building permits expected with a 0.4% drop to 1.260 million units, while housing starts are estimated with a 0.2% increase to 1.230 million. 

The Federal Open Market Committee is meeting today and tomorrow for the periodic policy meeting, with analysts expected the fourth rate hike of the year to below 2.25%. 

The Fed will also release three-year forecasts for growth, inflation, unemployment, and interest rates.