Gold pitches higher as dollar weakens

Gold buyers will watch the Fed’s policy statement on Wednesday

Gold futures climbed on Monday as the dollar inched lower, supporting a move higher for the yellow metal in early trade.
February gold GCG6, +0.92%  was $11.60, or 1.1%, higher at $1,107.90, after the precious metal finished last week with a 0.5% weekly gain.
The ICE U.S. Dollar Index DXY, -0.21% a measure of the greenback against six rival currencies, was 0.2% lower at 99.3640

A monetary-policy statement expected from the Federal Open Market Committee on Wednesday could set the tone for the commodity complex. Any signs of dovish sentiment from the central bank, including hints that policy makers may slow the pace of interest-rate increases given the turmoil in global stock markets, could help lift dollar-denominated gold.
A slower pace of rate hikes could weaken the dollar and make commodities priced in the currency more attractive to buyers using other monetary units.
Fretting about global growth has dogged markets and, at least temporarily, eroded appetite for risky assets, including stocks, while driving flight-to-safety investments in gold and the yen.
“The pullback in risk markets has defensive plays like [the yen] and gold on the rebound. Copper is also trading moderately higher this morning,” said Colin Cieszynski, chief market strategist at CMC Markets.
March high-grade copper HGH6, +0.00%   was little changed at $2.003 a pound, after posting a weekly gain last week of 3%.
In other metals, March silver SIH6, +1.34%   gained 20 cents, or 1.4%, to trade at $14.26 an ounce, April platinum PLF6, +3.54%   gained $27.90, or 3.4%, to trade at $859.60 an ounce, while March palladium PAH6, -1.08%   lost $6.55, or 1.3%, to stand at $493.30 an ounce.