Dollar dip lifts gold, focus on Fed later

Gold rallied for a second day on Tuesday to reach one-week highs above $1,400 an ounce, taking advantage of a slide in the dollar ahead of a US policy meeting. The Federal Reserve gathers for a one-day rate-setting meeting on Tuesday at which policy makers are expected to assess the central bank's $600 billion bond-buying plan but are not forecast to signal any shift or change in the programme.

Spot gold rose to a one-week high of $1,406.65 an ounce, before easing to $1,403.55 by 1023 GMT, up 0.8 per cent from the previous close. US gold futures rose 0.5 per cent to $1,404.60. The dollar remained under pressure after having lost almost 1 per cent against a basket of major currencies on Monday, pushing the euro to three-week highs. Spot silver rallied for a second straight day to a one-week high of $29.90, before trading at $29.80, up 1.1 per cent on the day. Platinum also rose to a one-week high of $1,713.49, before easing to show a 0.7 per cent gain on the day at $1,706.74, while palladiu rose 0.4 per cent to $757.47.