Gold rises slightly as USD weakens ahead of US Federal Reserve meeting

The price of gold is rising slightly on Monday morning; the weakening dollar ahead of the meeting of the US Federal Reserve System (Fed) supports the price of the precious metal.

The price of December gold futures on the New York Comex exchange rose by $3.15 (0.16%) to $1,949.35 per troy ounce. December silver futures rose 0.15% to $23.422 an ounce.

The dollar index (the rate against a basket of currencies of six US trading partner countries) fell by 0.07% to 105.25 points. A cheaper dollar makes gold more accessible to purchase in other currencies.

Traders expect the Federal Reserve to announce the results of its next two-day meeting on Wednesday. According to forecasts, the regulator may keep the discount rate at 5.25-5.5% per annum after increasing it in July. Traditionally, dovish signals from the Fed negatively affect the dollar and support gold.

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