Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as the U.S. dollar held on to a modest rise in the wake of the latest monetary policy update from the Federal Reserve.
The most active gold contract for December delivery went up 6.80 dollars, or 0.54 percent, to close at 1,277.30 dollars per ounce.
In a statement issued after gold futures finished trade for the session, the central bank said it left interest rates unchanged in a range of 1 percent to 1.25 percent, as expected.
Higher interest rates increase the cost of storing commodities and make them less attractive for investors seeking better returns across assets. Higher rates may also boost the value of the dollar, which usually moves in the opposite direction of the gold price.
Gold posted a climb for the session even as the dollar strengthened and as global equity markets traded mostly higher. The U.S. dollar Index was up 0.23 percent to 94.77 as of 1830 GMT.
As for other precious metals, silver for December delivery added 48.3 cents, or 2.89 percent, to close at 17.176 dollars per ounce. Platinum for January rose 17.1 dollars, or 1.86 percent, to settle at 936.70 dollars per ounce.
The most active gold contract for December delivery went up 6.80 dollars, or 0.54 percent, to close at 1,277.30 dollars per ounce.
In a statement issued after gold futures finished trade for the session, the central bank said it left interest rates unchanged in a range of 1 percent to 1.25 percent, as expected.
Higher interest rates increase the cost of storing commodities and make them less attractive for investors seeking better returns across assets. Higher rates may also boost the value of the dollar, which usually moves in the opposite direction of the gold price.
Gold posted a climb for the session even as the dollar strengthened and as global equity markets traded mostly higher. The U.S. dollar Index was up 0.23 percent to 94.77 as of 1830 GMT.
As for other precious metals, silver for December delivery added 48.3 cents, or 2.89 percent, to close at 17.176 dollars per ounce. Platinum for January rose 17.1 dollars, or 1.86 percent, to settle at 936.70 dollars per ounce.
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