Gold climbed to $1,064.60 (+0.28%) ahead of the end of the Fed's two-day policy meeting. The central bank of the U.S. is widely expected to raise rates to a range of 0.25%-0.50% from 0%-0.25%. Higher rates increase the opportunity cost of holding the non-interest paying precious metal and reduce demand for it. Bullion has already lost 9% of its price this year.

Analysts say that gold might plunge after the rate hike, but rebound this loss in the short-term period as the hike is expected.