Gold up on Fed patience on rates hike

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as the U.S. central bank indicated patience on raising interest rates.

The most active gold contract for April delivery rose 4.2 U.S. dollars, or 0.35 percent, to settle at 1,201.50 dollars per ounce.

Gold was given a lift as the U.S. dollar fell by 0.23 percent to 94.23. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

The precious metal was put under slight pressure as a report released on Wednesday by the U.S. Department of Commerce showed sales of new homes increased by a better-than-expected 481,000 annual rate in January.

Silver for March delivery rose 24.2 cents, or 1.49 percent, to close at 16.43 dollars per ounce. Platinum for April delivery added 6.2 dollars, or 0.53 percent, to close at 1,168.80 dollars per ounce.