Spot gold touched positive territory after the Fed offered signaled that it was on track to raise interest rates sometime next year, saying it would take a ‘patient’ approach to raising rates, equating that with phrasing in previous statements about keeping rates near zero for a ‘considerable time’ in a show of confidence in the U.S. economy.
Initially flat, spot gold rose 0.2 percent to $1,198 an ounce after the verdict. On Tuesday, the metal hit a session high above $1,221 then a one-week low of $1,188.41 before ending marginally firmer. U.S. gold for February settled 20 cents higher at $1,194.50 an ounce before the announcement.
Investors were also eyeing Russia after the ruble plunged more than 11 percent against the dollar on Tuesday despite a hefty interest rate hike.