Mubasher: Gold traded in a constricted range on Wednesday, as caution gripped investors as they were waiting for the US Federal Reserve’s policy move later in the day, as declining equities supported the metal, according to Reuters.

By 7:47 am GMT, spot gold inched up by 0.09% to $1,489.08 per ounce, while US gold futures ticked up by 0.04% to $1,491.30 per ounce.

The Fed is expected to reduce interest rates by 0.25% for the third time this year, as per expected by CME Group’s FedWatch tool.

“If the Fed is more dovish in their outlook, it could be enough to drive gold higher,” OANDA analyst Jeffrey Halley was quoted by Reuters.

Movement in Asian stock markets in Asia was mute on Wednesday, with the Morgan Stanley Capital International’s (MSCI) broadest index of Asia-Pacific equities outside Japan falling by 0.16% from Tuesday’s three-month peak on the possibility of a delay to the US-China trade deal.

In Europe, general election in the UK is slated to be held in December after the House of Commons green-lighted an early ballot to resolve the Brexit stalemate.