- Gold prices inched higher in rangebound trade on Wednesday, as market players prepared for the outcome of the Federal Reserve’s policy meeting and news on the fate of its bond buying program.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery held in a tight range between USD1,248.90 a troy ounce and USD1,256.80 a troy ounce.

Comex gold last traded at USD1,253.10 a troy ounce during European morning hours, up 0.2%. The April contract fell to USD1,248.00 a troy ounce on Tuesday, the weakest level since January 23, before trimming losses to settle at USD1,250.50, down 1.03%.

Gold futures were likely to find support at USD1,230.80 a troy ounce, the low from January 23 and resistance at USD1,280.10, the high from January 27.

Traders readied for the outcome of the Fed’s two-day policy meeting on Wednesday, amid expectations for a reduction to the central bank’s stimulus program.

Market analysts expect the Fed to cut its bond buying program to USD65 billion from the current USD75 billion. The central bank announced its first cut to the USD85 billion in monthly bond purchases in December, citing an improving economy.

The policy meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over.

Meanwhile, silver for March delivery added 0.1% to trade at USD19.52 a troy ounce. Comex silver prices held in a range between USD19.46 a troy ounce and USD19.62.

The March silver contract slumped to USD19.45 a troy ounce on Tuesday, the lowest since January 9, before paring losses to end at USD19.50 a troy ounce, down 1.47%.

Elsewhere on the Comex, copper futures for March delivery rose 0.25% to trade at USD3.261 a pound.

Appetite for riskier assets improved after Turkey’s central bank announced aggressive rate hikes overnight in an effort to stem the lira’s decline.

Turkey''s central bank raised its overnight lending rate to 12% from 7.75% and its repurchase rate to 10% from 4.5% in its first emergency meeting since 2011.

The move eased concerns over emerging markets, following a broad based selloff last Friday, triggered by worries over the impact of reduction in Fed stimulus and concerns over a possible slowdown in China.

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