Gold extends advance as US rates seen staying low for longer

LONDON: Gold rose for a second day before a US Federal Reserve meeting where policy makers are seen refraining from raising interest rates and may push out expectations for an increase further into the future.

Gold rose 0.4 per cent to USD 1,171.86 an ounce and Silver gained 1.07 per cent to USD 16.04 an ounce.

Open interest, a tally of outstanding contracts, suggests investors are preparing for a rally on prospects the Fed signals rates will stay low for longer, according to RBC Capital Markets.

Meanwhile, the Federal Open Market Committee is scheduled to release a policy statement later in the day in Washington following a two-day meeting to debate borrowing costs.