SINGAPORE (Commodity Online) : Gold and silver rebounded Wednesday from overnight dips as the dollar dropped further ahead of a crucial US Fed meeting outcome.
Spot gold was seen trading at $1509.03 an ounce at 1.30 p.m Singapore time while silver was at $45.75 at the same time.
Gold climbed back near record gains as it hit 1,510.50 an ounce in early trade, up by 0.5 percent while cash silver jumped as much as 1.6 percent to $46.23 an ounce after touching a record $49.79 on April 25.
Analysts said both the precious metals are likely to extend gains during the day as the dollar reached its lowest level in more than two years against a basket of six currencies after the Fed began a two-day policy meeting.
The Dollar Index has lost 10 percent in the past year as the Fed has kept interest rates near zero and bought Treasuries.
They added that investors cautiously awaited the conclusion of the policy meeting while feeble sentiment.
Meanwhile palladium and platinum also recovered. Palladium increased 0.5 percent to $756 an ounce and platinum gained 0.4 percent to $1,812.55 an ounce
On Tuesday, gold futures closed lower to end an eight-session winning streak. June gold closed down $5.60, or 0.4%, at $1,503.50 an ounce on the Comex division of the New York Mercantile Exchange.
The contract had traded as low as $1,492 earlier. May silver was down $2.05 at $45.10 an ounce, but the price was not yet settled.
