2023.03.2217:53:00UTC+00Gold Futures Settle Higher As Dollar Eases Ahead Of Fed Policy Announcement

Gold futures settled modestly higher on Wednesday as the dollar drifted lower ahead of the Federal Reserve's monetary policy announcement.

Gold futures for April ended higher by $8.50 or about 0.4% at $1,949.60 an ounce.

Silver futures for May ended up $0.361 at $22.786 an ounce, while Copper futures for May settled at $4.0445 per pound, gaining $0.0505.

The Fed is widely expected to raise interest rate by 25 basis points. CME Group's FedWatch Tool is currently indicating an 86.4% chance the Fed will raise interest rates by 25 basis points.

Recent troubles in the banking sector led to some speculation the Fed might leave rates unchanged, but large-scale efforts to address the turmoil have largely negated that sentiment.

The focus is likely to be on the Fed's accompanying statement as well as its latest projections for the economy, inflation and interest rates.

The dollar index, which dropped to 102.98 in the Asian session, recovered some lost ground subsequently and was last seen at 103.08, down 0.17% from the previous close.