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Gold prices traded higher on Wednesday ahead of the upcoming Federal Reserve policy meeting later in the day.


Gold futures for June delivery on the Comex division of the New York Mercantile Exchange were up $4.0, or 0.31%, to $1,310.8 a troy ounce by 12:52AM ET (04:52 GMT).


The Federal Reserve is widely expected to keep the benchmark lending rate, but traders would focus on whether the Fed would change the outlook for future rate hikes this year, after recent data suggested signs of possible acceleration in the U.S. economy.


Meanwhile, the dollar pulled back after recording its biggest jump in more than a week earlier in the day. The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 92.20, down 0.09%.


The dollar was supported by the outlook for a strong U.S. economy and rising yields amid signs of slowdown elsewhere.


Dollar-denominated assets such as gold are sensitive to moves in the dollar – a fall in the dollar makes gold less expensive for holders of foreign currency and thus increases demand for the precious metal.


In other precious metal trade, silver futures gained 1.20% to $16.320 a troy ounce, and platinum futures climbed 0.3% to $897.2 an ounce.