Gold up ahead of Fed minutes release

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday ahead of the release of the minutes from the previous U.S. Federal Reserve meeting.

The most active gold contract for December delivery rose 11 U.S. dollars, or 0.98 percent, to settle at 1,127.90 dollars per ounce.

Gold was given support as traders speculated on the information contained in the release of the meeting minutes from the last Federal Open Market Committee.

Analysts expect the U.S. central bank to increase the interest rate in September, assuming that employment data remains strong. An increase in the Fed's interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest.

The precious metal was given additional support as a report released by the U.S. Department of Labor showed the consumer price index rising by a 0.1 percent in July, which analysts said was lower than expected. The report also shows overall inflation increasing by 0.2 percent, which analysts note is the second positive reading of the year.

Analysts also said that declines in global stock markets provided a boost to gold on Wednesday.

Silver for September delivery rose 38.9 cents, or 2.63 percent, to close at 15.179 dollars per ounce. Platinum for October delivery added 19 dollars, or 1.91 percent, to close at 1,013.10 dollars per ounce.