Gold prices rose slightly, on Wednesday, as investors awaited the minutes of the latest monetary policy meeting of the US Federal Reserve to assess the chances of continuing to raise interest rates.
Spot gold rose 0.1 percent to $1,835.79 an ounce by 0643 GMT. And gold futures contracts in the United States increased 0.1 percent to $ 1844 an ounce.
Although gold is considered a tool to hedge against inflation, high interest rates increase the opportunity cost of possessing the precious metal, which does not yield a return..
Minutes of the US central bank’s latest monetary policy meeting are due to be published at 1900 GMT, Wednesday. The bank raised interest rates by 25 basis points at its meeting that took place on January 31 and February 1 and is expected to raise key interest rates above 5 percent by May, with interest peaking at 5.347 percent in July..
There was little change in the spot silver price at $21.83 an ounce, while platinum rose 0.2 percent to $944.18. The two metals fell from their highest levels in a week recorded on Tuesday.
Palladium fell 0.4 percent, recording $1,518.92 an ounce.
