NEW YORK (MarketWatch) — Gold prices were nearly flat Wednesday, as investors waited for what likely will be a Fed-induced spike in trading action.
Gold for August delivery (GCQ4) inched up 30 cents to $1,272.30 an ounce. July silver (SIN4) gained 2 cents to $19.76 an ounce.
Bloomberg The Federal Reserve's two-day meeting winds down with a statement due at 2 p.m. Eastern. A half-hour later, Fed chief Janet Yellen will hold her press conference. Read: 5 questions in search of answers from the Fed .
Gold futures could fall if Fed officials indicate that interest-rate hikes are coming sooner than expected, or if Yellen makes unexpected comments about the path of monetary policy, said Tyler Richey, an analyst for the 7:00's Report, in emailed comments. Read more: Fed could jolt markets with rate-hike views
Meanwhile, Michael Lombardi of the Profit Confidential blog says he believes both gold and silver are poised to rally in the face of the current economic prospects.
"Today's depressed precious metal prices continue to offer investors a real opportunity to get into gold and silver (two great inflation hedges) at discounted prices," he wrote. "Both these metals should rise in value over the next five years as inflation accelerates."
In Iraq, parts of the nation's main oil refinery were in flames Wednesday as government forces fought to repel militants who gained partial control of the facility.
"The civil war in Iraq remains a major market factor at mid-week and is prompting some keener risk aversion among many traders and investors," said Jim Wyckoff, senior analyst at Kitco.com, in emailed comments on Wednesday.
On Tuesday, gold snapped its six-session winning streak, pulling back slightly on word that the Iraq government had at least some success in handling the ISIS militant threat.
Elsewhere in metals trading on Wednesday, July platinum (PLN4) rose $7.00, or 0.5%, to $1,450.10, while September palladium (PAU4) gained $6.40, or 0.8%, to $823.10 an ounce. High-grade copper for July delivery (HGN4) was roughly flat at $3.06 a pound.
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