Mubasher: Gold prices rose beyond the eight-month peak reached in the prior session ahead of the US Federal Reserve’s policy decision, while worries mounted over US-China trade ties.

By 9:16 am GMT, US gold futures rose 0.27% to $1,318.80 per ounce, while spot gold went up 0.18% to $1,314.09 per ounce.

In the previous trading session, spot gold hit 1,311.98 per ounce, its highest level since 15 May 2018, according to Thomson Reuters.

The yellow metal gained as the US dollar index, a gauge for the currency against a group of six major peers, went down 0.06% to 95.7630.

Market anticipate possible clues from the Fed on whether it might place brakes on its current monetary tightening policy, after policymakers started a two-day policy meeting on Tuesday.

Some Fed officials signalled that the central bank would be patient in raising interest rates, amid the impasse over global trade, the US federal government shutdown, and fading business and consumer sentiment.

A policy statement from the US central bank is due to be released on later in the day.

The yellow metal tends to gain on prospects of lower costs of borrowing, which lower the opportunity cost of holding non-yielding bullion.

However, criminal charges brought against China’s Huawei for violating US sanctions on Iran sent a shudder of fear among investors.

The charges could complicate the high-profile trade talks on Wednesday in which Chinese Vice Premier Liu He would meet US Trade Representative Robert Lighthizer and others.

In addition, UK parliament voted down most amendments which aimed to prevent the country from leaving the European Union (EU) without a trade agreement, re-fuelling concerns of a chaotic withdrawal from the bloc, which would potentially damage the nation’s economy.