Gold pared its earlier gains on Tuesday despite the retreat in dollar and equities, with investors waiting for the outcome of policy meetings by the Bank of Japan and Federal Reserve this week.
The precious metal hit a high of $1240.75 an ounce, while currently trading around $1234.22 from the opening at $1237.66.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, dropped for a second straight sessions to hover around 94.50.
The green currency slipped on Monday, buoyed by downbeat data showing U.S. new home sales slumped 1.5 percent to an annual rate of 511,000 units in March.
Later in the day, the U.S. will release important data including durable goods orders, services PMI and consumer confidence.
Asian shares traded lower as oil retreated and investors remained cautious ahead of the awaited BOJ and Fed meetings.
Japan’s Nikkei 225 index fell 0.49 percent to 17,353.28 as the yen resumed its rise for a second consecutive session versus the green currency.
The Federal Reserve will start its two-day policy meeting later in the day, where investors predict no change in interest rates.
The Fed will probably hold its borrowing cost, but investors will look for clues about the future path of rate hikes.
The BOJ may ease its monetary policy further to boost inflation, but some analysts argue that policymakers would wait to see the effect of the negative rates announced at the end of January.
