LONDON: Gold climbed briefly back above $1,280 an ounce on Wednesday as caution ahead of this week's confirmation of the new Federal Reserve chair and a policy statement from the bank prompted some to close out bets on falling prices.
Fed Governor Jerome Powell is widely tipped to take over from incumbent Janet Yellen at the head of the US central bank next year. He is seen as a less hawkish and therefore more gold friendly choice than his main challenger John Taylor, a Stanford University economist.
A statement at the end of the Fed's latest policy meeting due later will also be closely watched for clues on the outlook for US interest rates. While the bank is expected to leave rates unchanged, investors will be watching for any indications that it will press ahead with another increase next month.
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