- Gold prices rallied on Wednesday, as ongoing turbulence in emerging markets boosted the safe haven appeal of the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose to a session high of USD1,266.20 a troy ounce, before trimming gains to trade at USD1,265.20 during U.S. morning hours, up 1.2%.

The April contract settled 1.03% lower on Tuesday to end at USD1,250.50 a troy ounce. 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.

Gold prices were lower earlier as market sentiment improved after Turkey’s central bank announced aggressive rate hikes late Tuesday in an effort to stem the lira’s decline.

However, the effects of Turkey’s monetary policy move appeared to abate on Wednesday as the lira retraced gains against the dollar, after spiking almost 4%.

Market players prepared for the outcome of the Federal Reserve’s policy meeting later in the day, amid expectations for a USD10 billion reduction in the central bank’s now USD75-billion-a-month stimulus program.

The policy meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over. The central bank announced its first cut to its USD85 billion in monthly bond purchases in December, citing an improving economy.

Meanwhile, silver for March delivery jumped 1.1% to trade at USD19.71 a troy ounce. Comex silver prices held in a range between USD19.46 a troy ounce and USD19.73.

Elsewhere on the Comex, copper futures for March delivery inched up 0.1% to trade at USD3.255 a pound.

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