Gold Rises as Investors Await The Release of The Minutes of The US Central Bank Meeting

Gold prices rose on Wednesday after falling in the previous session with the yellow metal retaining its allure as a hedge against inflation ahead of the release of the minutes of the Federal Reserve meeting later on Wednesday.

Spot gold rose 0.1 percent to $1,854.97 an ounce by 1030 GMT. US gold futures settled at $1,858.30.

Higher interest rates increase the cost of holding non-yielding bullion.

Market participants are awaiting the minutes of the Federal Reserve’s meeting, which was held on January 25-26, and is scheduled for release at 1900 GMT on Wednesday.

Gold touched its highest level since June last year on Tuesday, before rebounding to close down nearly 1% after the Russian Defense Ministry said it was returning some troops to their bases after exercises near Ukraine.

As for other precious metals, the price of silver in spot transactions rose 0.4 percent to $23.43 an ounce, and platinum rose 0.4 percent to $1029.89, as well as palladium 0.4 percent to $2256.55.