Gold rises ahead of Fed policy meeting announcement

Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly Tuesday after U.S. producer prices for August turned out flat amid the Federal Reserve's policy meeting.

The most active gold contract for December delivery rose 1.6 U. S. dollars, or 0.13 percent, to settle at 1,236.7 dollars per ounce.

Trading was still low in the day as traders were waiting for the U.S. central bank to conclude its two-day-long meeting regarding interest rates. The modest inflation data released by the U.S. Labor Department somewhat eased the worries about the Fed 's earlier-than-expected interest rate hikes.

Some analysts believe that gold has not performed well this year, despite many opportunities to do so. They say that traders are beginning to realize there is very little point in holding onto it as the U.S. economy improves.

Silver for December delivery gained 10.1 cents, or 0.54 percent, to close at 18.721 dollars per ounce. Platinum for October delivery gained 3.8 dollars, or 0.28 percent, to close at 1,367.3 dollars per ounce.