Investing.com - 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 for June delivery on the Comex division of the New York Mercantile Exchange rose by $1.74, or 0.14%, to $1,257.35 a troy ounce by 13:52 EDT.
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.
That said, the majority of traders, expected the Federal Reserve to maintain its previous guideline of three total rate hikes in 2017, with the second rate hike widely expected in June.
According to investing.com's Fed rate monitor tool, 62.4% of traders expect the Federal Reserve to hike interest rates in June.
Treasury yields have dipped ahead of the Federal Reserve interest rate decision, with the U.S. 10-Year at 2.305, down nearly 1%.
Meanwhile, on the political front, investors looked ahead to the outcome of the upcoming final round of the French presidential election, scheduled for May 7.
According to the latest polls, pro-EU candidate Emmanuel Macron holds a healthy lead, about 20 percentage points, over far-right candidate Marine Le Pen.
In other precious metals trading, silver futures added 0.15% to $16.867 a troy ounce while platinum traded at $925.05, down 0.77%.
Copper lost 0.88% to $2.637 while natural gas dipped 1.12% to $3.179.
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