Gold higher

Bengaluru

Gold crept up early on Wednesday as the market waited for the end of a two-day U.S. Federal Reserve meeting, with the central bank expected to hike interest rates and give indications on its monetary policy for the rest of the year.

Spot gold had risen 0.2 percent to $1,267.85 per ounce at 0106 GMT. It hit a session low of $1,259.16 on Tuesday, its weakest since June 2. U.S. gold futures for August delivery climbed 0.1 percent to $1,269.80 per ounce * Palladium, which marked a 16-year high last week, was down 0.5 percent at $878.25 an ounce. The Fed is widely expected to raise its benchmark interest rate this week due to a tightening labour market and may also provide more detail on its plans to shrink the mammoth bond portfolio it amassed to nurse the economic recovery. The Fed will probably express its confidence inflation will climb towards its 2 percent target at its meeting, but such assurances are a poor indicator of the central bank´s future policy.