2018.12.1806:10:00UTC+00Gold Holds Near One-week High Ahead Of Fed Meeting

Gold prices edged up slightly to hover near a one-week high on Tuesday as the dollar remained under pressure ahead of a key Federal Reserve meeting.

Spot gold rose 0.15 percent to $1,249.32 per ounce, while U.S. gold futures were up 0.10 percent at $1,253.05 per ounce.

The Fed begins its two-day policy meeting later today and is expected to raise rates for a fourth time this year. However, the accompanying statement is likely to be dovish amid mounting risks to global growth.

Lower U.S. interest rates are positive for dollar-priced gold as they reduce the opportunity cost of holding the bullion.

The U.S. dollar will likely remain a key driver for gold in the near term in the face of mounting risks to global growth.

After soft Chinese data late last week, Japan today revised down its forecasts for economic growth and inflation for the current and next fiscal years, highlighting the effects from the U.S.-China trade war.