• Gold prices edged up on Wednesday on safe-haven buying due to uncertainty over the outcome of Dutch elections, while markets waited for clues on the pace of U.S. interest rate hikes this year.
• With an immediate rate increase by the Federal Reserve seen as a done deal, investors are focusing on what message the central bank will deliver when it concludes a two-day meeting on Wednesday. In December, the Fed forecast three rate rises this year.
• Spot gold <XAU=> had edged up 0.4 percent to $1,203.31 per ounce by 0608 GMT.
• "We do not think much will change throughout much of Wednesday ahead of the Fed rate decision and policy statement," said INTL FCStone analyst Edward Meir.
• "Our bias is still somewhat constructive on gold given that we think the Fed will shrink from coming across as too aggressive."
• Investors were also focusing on Wednesday's Dutch elections, which have been boosting gold's safe-haven appeal.
• The Party for Freedom is seen as having little chance of coming to power, but a strong election performance for the group that says it wants to "de-Islamicise" the Netherlands would fuel worries over a surprise result in French presidential elections in April and May.
• "We expect the bullish bias to continue throughout the session as the Dutch election gives the yellow metal a slight safe-haven bid," said Jeffrey Halley, senior market analyst at OANDA.
• Critical support for gold held around $1,180, analysts said.
• Prices have fallen over 5 percent since gold failed to sustain a break above its 200-day moving average at around $1,261 in late February.
• Spot silver <XAG=> rose 0.5 percent to $16.92 an ounce.
Reference: Reuters