Dollar slips from a fourmonth high
China39;s central bank pauses gold purchases for sixth straight month
Fed rate decision due at 1900 GMT

Nov 7 Reuters Gold prices rose on Thursday but traded near a threeweek low, as market participants awaited an expected rate cut decision by the U.S. Federal Reserve later in the day.

Spot gold gained 0.3 to 2,667.40 per ounce, as of 1051 GMT, after hitting its lowest level since Oct. 15 earlier in the session.

U.S. gold futures shed 0.1 to 2,674.20.

The dollar index eased from a fourmonth high, following Republican Donald Trump39;s win in the U.S. presidential election. A stronger dollar tends to make bullion less attractive for overseas buyers.

The longterm impact of the new administration39;s trade policies could lead to higher inflation, potentially forcing the Fed to maintain elevated interest rates for an extended period. In such a scenario, nonyielding assets like gold would likely come under additional pressure, said Ricardo Evangelista, senior analyst at ActivTrades.

Gold is considered a hedge against inflation but higher interest rates reduce nonyielding bullion39;s appeal.

From a technical perspective, I see a support line around 2600 and a new resistance level at 2700 Evangelista added.

The market is expecting a 25basispoint reduction from the Fed, which is set to announce its decision at 1900 GMT. All eyes are also on Chair Jerome Powell39;s press conference.

On Sept.18, the Fed kickstarted the policy easing…