Gold firmed well above the $2,000 level on Wednesday, buoyed by uncertainty surrounding the U.S. debt ceiling and other economic headwinds, while investors positioned for the U.S. Federal Reserve's monetary policy decision.
. It was trading in a narrow $7.01 range.The Fed's rate decision is expected at 1800 GMT, with the likelihood of a 25-basis-point rate hike pegged at 86%.in its 14-month tightening cycle, as policymakers balance the need to slow inflation against risks ranging from bank failures to the possibility of a U.S. debt default as soon as next month.
Bullion, known as a hedge against inflation and economic turbulence, gained over 1% in April amid the banking crisis. But higher rates tend to dent the zero-yield asset's appeal.
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