Gold firms more on FOMC rates statement

London - Spot Gold is trading marginally higher Wednesday morning, with market participants awaiting the Federal Reserve's rate announcement they said should set the tone for the days ahead.


While traders and analysts aren't expecting any surprises from the U.S. Federal Reserve Open Market Committee meeting result, due around 1815 GMT, Commerzbank analyst Daniel Briesemann said the market would be "looking very closely at the strength of the wording."


The Federal Reserve began its two-day policy meeting Tuesday. The central bank is widely expected to announce that interest rates will remain low for an extended period.
 



The Bullion Desk's James Moore added: "We have had a mixed bag of economic data of late, and people are looking for direction; for clues on interest rates going forward."


At 0846 GMT, Spot Gold was at $1,242.82 a troy ounce, up 0.2% on Tuesday's close.


Briesemann said the market has been supported by news the SPDR gold trust increased its holdings by 5.1 metric tons Tuesday, to a new high of 1,313 tons.


Meanwhile, at 0846 GMT spot silver was at $18.85/oz, up 0.5% on Tuesday's close, platinum was at $1,576.50/oz, down 0.2%, and palladium was at $482.45/oz, up 0.3%.


Platinum and Palladium have dipped in recent days as a result of weaker risk and commodity sentiment in Asia.


Analysts said both were likely react more like base metals following China's announcement Sunday to de-peg the yuan from the dollar, and track broader industrial commodity sentiment in the week ahead.