Investing.com - Gold prices edged higher in Asia on Wednesday with the latest Fed view on interest rates awaited by the market, particularly to understand if weaker growth than expected and a slower legislative process on tax cuts and spending plans by the Trump administration has had an impact on forecasts for this year.
Gold for June delivery on the Comex division of the New York Mercantile Exchange rose 0.05% to $1,257.64 a troy ounce. However copper futures on the Comex dropped 0.91% to $2,616 a pound.
Overnight, gold prices pared losses on Tuesday, benefiting from a weaker dollar, as investors' appetite for riskier assets eased slightly ahead of the Federal Reserve's interest rate decision on Wednesday.
Gold bounced back from a three-week low, as uncertainty regarding the tone of the Federal Reserve statement, due to be released on Wednesday, alongside an interest rate decision, capped losses.
Recent economic data have not been supportive of faster rate hikes as manufacturing, and construction spending activity fell in April while investors braced for a jobs report on Friday.
Economists' forecast that the Fed will leave its benchmark rate unchanged but investors are likely to parse through the Federal Reserve statement for any hints concerning a June rate hike.
According to investing.com's Fed rate monitor tool, 62.4% of traders expect the Federal Reserve to hike interest rates in June. Elsewhere, the final round of the French election, scheduled for Sunday May 7, offset weaker than expected economic data as current polls predict an easy victory for pro-EU candidate Emmanuel Macron on May 7.
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