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(Bloomberg) -- Gold edged higher ahead of the Federal Reserve’s final interest-rate decision of the year, with traders also weighing the policy outlook for 2025.

Bullion’s gain followed a 2.6% decline in the previous two sessions on the back of mixed US data last week — including accelerating wholesale inflation and higher-than-expected jobless claims.

The Fed is expected to cut interest rates by 25 basis points at its Wednesday meeting, and swap traders are pricing in a total of three quarter-point cuts over the next 12 months. Lower rates are typically positive for gold, as it doesn’t pay interest.

The precious metal has risen about 29% this year, putting it on track for its biggest annual gain since 2010. Its breakneck run has been supported by Fed easing, safe-haven demand and sustained buying by the world’s central banks.

Spot gold rose 0.2% to $2,654.65 an ounce as of 10:59 a.m. in New York. The Bloomberg Dollar Spot Index was little changed. Platinum and silver advanced, while palladiuim edged lower.

--With assistance from Preeti Soni, Atul Prakash, Jake Lloyd-Smith, Jack Ryan and Yvonne Yue Li.