Gold climbed yesterday as stock markets surrendered early gains to fall ahead of a policy statement from the Federal Reserve (Fed), with traders awaiting news on whether the US central bank will further cut its bond-buying programme. In London , gold was fixed at $1 264 an ounce (R456 555 a kilogram), rising $12.75 from Tuesday's second fixing. The precious metal recovered losses made in earlier trade as a rally in stock markets ran out of steam, with a recovery in emerging markets looking to be short-lived. European stocks were down 1.2 percent in mid-afternoon trade, while Wall Street opened lower as the Turkish lira weakened despite its central bank's interest rate increase. "We have the Federal Open Market Committee coming up, and we'll have some position squaring ahead of that," Ole Hansen at Saxo Bank said. "We'll have to see how the dollar behaves, how bond yields behave, how the equity markets behave [after that]." - Reuters The Mercury
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