Gold little changed ahead of Fed meeting

The shiny metal is traded near the day's opening level, close to all-time high, ahead of the Fed meeting due later in the day, where investors are waiting for the rate decision and Bernanke's comments.

The previous session, gold shed $0.30 or 0.02% after closing at $1506.05, while gold price was setin London at $1497.50 per ounce declining from $1505.00 during the AM fixing.

Spot gold is trading at $1506.24 an ounce after recording a high of $1509.92 and a low of $1505.30.

Still, the volume is low after the holidays, yet we might see some movements with the release of European data followed by the other US data and the FOMC meeting.

The Fed is expected to keep interest rate at its low level between 0.0% and 0.25% and continue its $600 billion bond-purchase program, yet remarks by the Fed chairman is awaited and may have effect on markets.

The dollar is still affected by the Fed's monetary policy which pushed the greenback to 16-month low versus the euro which was boosted by the interest rate hike by the ECB in April.

The dollar index, which tracks the dollar movements versus a basket of major currencies, dropped to a low of 73.48 compared with the day's starting level of 73.77, where it is showing weakness on expectations the Fed will hold its monetary stance unchanged.

The dollar's depreciation along with other factors has participated in the significant rise in commodity prices. Crude oil for June delivery is currently traded above $112 a barrel.

Among other precious metals, platinum plummeted to $1807.50 from the day's opening of $1810.50, palladium inched down to $751.00 from $752.00 and silver edged down from 31-year high to $45.65 from $45.97, as of 07:10 GMT.