London — Gold prices held near their lowest in nearly five months on Wednesday as investors looked ahead to an expected US interest rate increase and clues from the US Federal Reserve on its plans for further rises next year. The Fed’s policy statement and latest economic projections are due at 7pm GMT (9pm SA time) and chairwoman Janet Yellen will give a news conference half an hour later, her last before her four-year term ends early next year. The Fed has increased rates twice this year and is expected to raise them three more times in 2018. Gold is sensitive to rising rates because they push up bond yields, reducing the appeal of non-yielding gold. They also tend to boost the dollar, making gold more expensive for holders of other currencies. Spot gold was down 0.2% at $1,241.53 an ounce at 11.32am GMT. On Tuesday it touched $1,235.92, the lowest since July 20. US gold futures were up 0.1% at $1,243.40 an ounce. Gold prices had tended to fall before recent US rate hikes but reco...
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