WASHINGTON (dpa-AFX) - Gold futures rose Wednesday as the Federal Reserve hiked interest rates but hinted at a 'wait-and-see' approach to further rate hikes.
As expected, the Fed raised the benchmark U.S. interest rate to a range of 1.25% to 1.5%.
However, the Fed maintained earlier forecast for just three 1/4-point rate hikes in 2018. Concerns about stubbornly low inflation prompted the cautious outlook.
Earlier in the day, the Labor Department said its Consumer Price Index increased 0.4 percent last month after edging up 0.1 percent in October.
Excluding the volatile food and energy components, consumer prices ticked up only 0.1 percent.
Feb. gold was up $6.90 to $1248.50/oz, improving from a 5-month low.
Copyright RTT News/dpa-AFX