Gold gains with Fed rate decision in spotlight
GLD•Other precious metals rise
Commerzbank said it was somewhat surprising that gold prices had not come under greater pressure so far. It noted that gold's resilience may be supported by persistent fiscal concerns, reflected in elevated long-term government bond yields, as well as a recent rise in U.S. political risks. US/
Among other metals, spot silver XAG= rose 1.5% to $64.59 per ounce, platinum XPT= edged 0.7% higher to $1,787.90, while palladium XPD= gained 2.2% to $1,317.50.
Fed outlook and rates pressure bullion
"A hawkish Fed could pull gold down, while any soft messaging may ease bets on hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East," said Frank Walbaum, a market analyst at trading platform Naga.com.
Gold is often seen as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding bullion.
Traders are pricing in a 92.7% chance of at least a 25-basis-point U.S. rate hike later in the day, according to CME FedWatch. The policy decision will be followed by a press conference from Fed Chair Kevin Warsh.
Gold edges higher ahead of Fed decision
Gold prices ticked up on Wednesday as oil prices eased, while market participants looked ahead to the U.S. Federal Reserve's policy decision, with a rate hike largely priced in.
