2020.06.0910:43:00UTC+00Gold Rises Ahead Of Fed Meeting

Gold prices rose on Tuesday and the dollar steadied as investors awaited the U.S. Federal Reserve's two-day monetary policy meeting, set to conclude on Wednesday.

Both spot gold and U.S. gold futures rose about 0.6 percent to $1,708.82 per ounce and $1,715.15, respectively.

Markets expect the Fed to be ultra-dovish despite a surprisingly strong employment report last Friday.

The U.S. central bank will have a tough balancing act to remain supportive as businesses reopen after months-long lockdowns.

The Federal Reserve has mulled a negative-rate policy since last October but doesn't want to go in this direction.

Meanwhile, growth worries persist after the World Bank warned the global economy will shrink by 5.2 percent this year, representing the deepest recession since the Second World War.

Economic activity in advanced economies is anticipated to contract 7 percent in 2020 as domestic demand and supply, trade, and finance have been severely disrupted, the World Bank Group said in its latest Global Economic Prospects report.

The U.S. economy is projected to shrink by 6.1 percent this year, while the euro area is likely to see a 9.1-percent contraction.