Investing.com - Gold prices rose on Wednesday on demand from investors seeking safe harbor from ongoing turbulence in emerging markets, though gains were muted ahead of the Federal Reserve''s announcement on monetary policy.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,262.60 a troy ounce during U.S. trading, up 0.97%, up from a session low of USD1,248.90 and off a high of 1,268.90.
The April contract settled down 1.03% at USD1,250.50 on Tuesday.
Futures were likely to find support at USD1,231.30 a troy ounce, the low from Jan. 23, and resistance at USD1,279.20, the high from Jan. 26.
Turkey and South Africa hiked interest rates earlier to support their currencies, which rekindled fears that an end to ultra-loose monetary policies in the U.S. and elsewhere will makes assets in emerging markets less attractive, which sent stocks falling.
Gold often serves as a hedge amid global stock-market selloffs.
Gains were somewhat muted on U.S. monetary policy uncertainty.
The Federal Reserve will release its statement on monetary policy and interest rates later, and markets were betting that months of broad improvements to U.S. economic indicators will prompt monetary authorities to trim USD10 billion from its USD75 billion bond-buying program.
The program, launched in September of 2012, originally started out at USD85 billion in monthly purchases of Treasury holdings and mortgage debt a month.
Fed asset purchases seek to spur recovery by holding down long-term interest rates, which weakens the dollar as a side effect and makes gold an attractive hedge, though talk of their dismantling can have the opposite effect.
Meanwhile, silver for March delivery was up 0.33% and trading at USD19.568 a troy ounce, while copper futures for March delivery were down 0.38% and trading at USD3.241 a pound.