How the Fed Is Moving Gold Prices Today By Tara Clarke

Gold prices today (Wednesday) are slightly up ahead of the U.S. Federal Reserve's 2 p.m. EDT press conference. The Fed concludes its two-day policy meeting this afternoon.

Spot gold traded up $0.90 at $1,235.80 an ounce as of 12:30 pm EDT, on track for its third-straight session of gains.

Source: Kitco

On Monday, gold prices hit an eight-month low at $1,225.30 an ounce. U.S. gold futures were flat at $1,236.80 ahead of Fed announcements.

Here's how the Fed is affecting gold prices today:

• Bad for Gold: Speculation that the Fed may go back on its previous statement that it'd keep interest rates low for a "considerable time" is moving the U.S. dollar toward a 14-month high today. Last week, the dollar rallied to a six-year high against the yen and a 13-month high against the euro, causing the yellow metal to lose nearly 3% of its value.

• Good for Gold: Contrasting speculation that the Fed will maintain its pledge to keep interest rates low is supporting higher gold prices. Interest rates are important for gold investors because low interest rates make gold a more attractive investment. When rates go up, investors typically seek out higher-yielding assets.

• Quote of the Hour: Any change in the "considerable time" guidance hinting towards an earlier rate hike "may have important ramifications for gold and would likely press prices lower," HSBC said in a note.

While gold prices today hover around an eight-month low, one factor that may turn the yellow metal around is mounting Asian demand. Here's an in-depth look at historical averages from India and China that indicate a bump for gold prices this fall...