Gold prices edged up on Wednesday on safe-haven buying due to uncertainty over the outcome of Dutch elections, while markets waited for clues on the pace of US interest rate hikes this year. With an immediate rate increase by the Federal Reserve seen as a done deal, investors are focusing on what message the central bank will deliver when it concludes a two-day meeting on Wednesday. In December, the Fed forecast three rate rises this year.
Spot gold had edged up 0.4 percent to $1,203.31 per ounce by 0608 GMT. US gold futures rose 0.1 percent to $1,203.30 per ounce. We do not think much will change throughout much of Wednesday ahead of the Fed rate decision and policy statement," said INTL FCStone analyst Edward Emir.
"Our bias is still somewhat constructive on gold given that we think the Fed will shrink from coming across as too aggressive."
Investors were also focusing on Wednesday's Dutch elections, which have been boosting gold's safe-haven appeal.
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