NEW YORK: Gold prices rose on Tuesday on a weaker dollar and expectations that the US Federal Reserve will likely end its monetary tightening cycle after a widely expected rate hike this week.

Spot gold was up 0.5% to $1,964.73 per ounce by 12:09 p.m. EDT (1609 GMT), while US gold futures gained 0.2% to $1,961.70.

The dollar eased 0.1% against its rivals, making gold less expensive for other currency holders.

“Gold is expected to be in a range-bound trade before the Fed decision. But there is optimism here that the Fed is almost done with rate hikes and that will support the market,” said Edward Moya, senior market analyst at OANDA.

The focus is on a series of central bank meetings this week, starting from the Fed policy decision on Wednesday, followed by the European Central Bank (ECB) on Thursday and the Bank of Japan a day later.

Markets anticipate 25 basis-point rate hikes from both the Fed and the European Central Bank, but investors will await clues on the outlook from policymakers, especially from Fed Chair Jerome Powell.

“The market will be looking out for Powell’s speech tomorrow and if it seems like they’re more likely leaning towards one more rate hike, then that would be bad news for gold,” Moya said.

Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding it.

China’s top leaders pledged on Monday to step up policy support for the economy, focusing on boosting domestic demand.

“The remarks out of Beijing to work on more stimulus for the economy will be positive for retail demand for gold by Chinese consumers,” said Peter Fertig, analyst at Quantitative Commodity Research.

Elsewhere, spot silver rose 1.4% to $24.70 per ounce, platinum gained 1.2% to $967.33 and palladium climbed 1.2% to $1,286.09.