2019.12.1117:54:00UTC+00Gold Futures End Higher Ahead Of Fed Policy Announcement

Gold prices moved higher on Wednesday, gaining for a second straight session, ahead of the Federal Reserve's monetary policy announcement.

Traders were also tracking the developments on the trade front, where it is being reported that the Trump administration is likely to delay imposing additional 15% tariffs on Chinese goods worth $160 billion.

The dollar shed ground after opening higher and the dollar Index was last seen at 97.40, down slightly from previous close. Earlier, the index advanced to 97.60 after opening at 97.51.

Gold futures for February ended up $6.90, or about 0.5%, at $1,475.00 an ounce.

On Tuesday, gold futures for February ended up $3.20, or 0.2%, at $1,468.10 an ounce.

Silver futures for March ended up $0.147 at $16.849 an ounce, while Copper futures for March settled at $2.7895 per pound, up $0.0240 from previous close.

In economic news, a report released by the Labor Department showed consumer prices in the U.S. increased by slightly more than anticipated in the month of November, rising 0.3% in the month, after climbing 0.4% in October. Economists had expected prices to edge up by 0.2 percent.

Excluding food and energy prices, core consumer prices crept up by 0.2% in November, matching the uptick seen in the previous month as well as economist estimates.

The Fed is widely expected to hold rates steady, with investors watching for changes to its view on the economy.

The European Central Bank is also expected to keep rates steady after its meeting on Thursday.

On the trade front, traders were digesting conflicting narratives. The Wall Street Journal reported that Washington is laying the groundwork for a delay in the latest tariffs on China, due to take effect on Sunday.

However, White House economic adviser Larry Kudlow said the "tariffs are still on the table". Analysts say that a trade deal might have to wait until after the U.S. presidential election in November 2020.