Gold, Silver climb back near record highs

Gold and silver rebounded Wednesday from overnight dips as the dollar dropped further ahead of a crucial US Fed meeting outcome. Spot gold was seen trading at $1509.03 an ounce at 1.30pm Singapore time while silver was at $45.75 at the same time. Gold climbed back near record gains as it hit 1,510.50 an ounce in early trade, up by 0.5% while cash silver jumped as much as 1.6% to $46.23 an ounce after touching a record $49.79 on April 25. Analysts said both the precious metals are likely to extend gains during the day as the dollar reached its lowest level in more than two years against a basket of six currencies after the Fed began a two-day policy meeting. The Dollar Index has lost 10% in the past year as the Fed has kept interest rates near zero and bought Treasuries. They added that investors cautiously awaited the conclusion of the policy meeting while feeble sentiment. Meanwhile palladium and platinum also recovered. Palladium increased 0.5% to $756 an ounce and platinum gained 0.4% to $1,812.55 an ounce On Tuesday, gold futures closed lower to end an eight-session winning streak. June gold closed down $5.60, or 0.4%, at $1,503.50 an ounce on the Comex division of the New York Mercantile Exchange. The contract had traded as low as $1,492 earlier. May silver was down $2.05 at $45.10 an ounce, but the price was not yet settled .