Gold rose for a third straight session on Wednesday, but pared gains after the US Federal Reserve held interest rates unchanged but left the door ajar to a hike in June. The US central bank's policy-setting committee said the labour market had improved further despite a recent economic slowdown and that it was keeping a close eye on inflation.
Spot gold was up 0.3 percent at $1,246.65 an ounce at 2:44 pm EDT (1844 GMT). US gold futures for April delivery settled up 0.6 percent at $1,249.20 an ounce prior to the Fed's statement. The Fed had been widely expected to keep interest rates steady this month, with focus resting squarely on the tone of its statement and any hints on the timing of any future increases. The US central bank raised rates in December for the first time in nearly a decade.
"By de-emphasizing global risks but acknowledging slower growth, the FOMC executed an equivocal pirouette that keeps a June/July move open but only just," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York. Among other precious metals, silver rose 0.7 percent to $17.28 an ounce, platinum added 1.3 percent to $1,020.99 and palladium was up 1.5 percent at $609.71.
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