Gold Gains On Rangebound Dollar; As Dovish Stance Expected In Fed's Meet

Gold prices surged for the third straight session as dollar index that measures the strength of the US currency against the basket of other emerging market currencies weakened. The range-bound dollar is on the expectations that Fed in its monetary policy decision will maintain a dovish stance.

Spot gold was up 0.1% at $1,304.91 per ounce as of 0058 GMT. U.S. gold futures also surged about 0.3% to $1,304.70 per ounce.

The dollar, which eased marginally against major currencies, traded close to a two-week low posted in the previous session.

Traders in the US are putting bet on a possible rate cut and no expectations are placed in respect of rate hikes this year.

In Monday's session, dollar index traded at two-week's low.

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