On Tuesday, spot gold prices declined marginally by 0.32 percent to close at $1295.6 per ounce as the dollar strengthened following a positive U.S. - North Korea summit, with markets now waiting for a likely interest rate hike by the U.S. Federal Reserve. The dollar hit a three - week high against the yen on Tuesday and Asian shares gained as U.S. President Donald Trump and North Korean leader Kim Jong Un signed a "comprehensive" deal at a historic summit aimed at the denuclearisation of the Korean peninsula. Trump said the closely watched summit with Kim in Singapore was "really very positive" and that he expected the de nuclearisation process to start "very, very quickly".
The Federal Open Market Committee's (FOMC) is widely expected to raise interest rates in its two - day meeting, which begins later in the day. Moreover, the European Central Bank would signal a winding d own of its vast bond - buying program at a meeting on Thursday. This would be likely to help gold by boosting the euro and weakening the dollar. Japan's central bank will also meet on June 14 - 15. On the MCX, gold prices are expected to be volatile today, international markets are trading flat at $1295 per ounce.