Gold jumped on Wednesday as the market waited for direction from the outcome of a two-day U.S. Federal Reserve meeting, with the central bank expected to hike interest rates and give indications on its monetary policy for the rest of the year.
The Fed is scheduled to release its interest rate decision at 2 p.m EDT on Wednesday, with Chair Janet Yellen due to hold a press conference 30 minutes later.
Higher rates could boost the dollar, making commodities priced in the greenback more expensive for holders of other currencies.
"Most people have already priced in a rate hike in June," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
"What really matters is the anticipation on further action and whether there will be hints on the extent or the schedule of the shrinkage of the balance sheet as well as other monetary