London — Gold prices edged up on Wednesday as the market waited for more clues on how many times the US Federal Reserve would raise interest rates in 2017, and on uncertainty over the outcome of Dutch elections. With an immediate US rate increase seen as a done deal, investors were focusing on what message the central bank would deliver when it concluded a two-day meeting on Wednesday. In December, the Fed forecast three rate rises in 2017. Spot gold had edged up 0.5% to $1,200.93 per ounce by 10.40am GMT while US gold futures rose 0.1% to $1,200.90 per ounce. "The market is in wait-and-see mode for this afternoon when we hear what the Fed will do this year," Mitsubishi analyst Jonathan Butler said on Wednesday. "The increase is largely in the price. The really interesting thing will be how hawkish the Fed sounds when they give the forecast of rate rises for the year," he said. Gold is highly exposed to interest rates and returns on other assets, as rising rates lift the opportunity...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.