LONDON: Gold edged lower on Wednesday as investors awaited guidance from the US Fedjijieral Reserve on whether it will reaffirm willingness to wait for an extended period before raising interest rates.

Gold has benefited from the low interest rates and increased liquidity that have dominated central bank policy in the years after the 2008 financial crisis.

Keeping US interest rates lower for a longer period bodes well for a non-interest bearing asset such as gold.

Spot gold was down 0.3 per cent at $1,223.70 an ounce by 1453 GMT after edging higher on Tuesday. The metal reached a six-week high of $1,245 last week.

US gold futures were down $5.80 an ounce at $1,223.60.

Published in Dawn, October 30th , 2014