LONDON: Gold prices rose 1 per cent on Wednesday as concerns over the Chinese economy knocked equities, and ahead of minutes of the Federal Reserve`s last policy meeting, which could give fresh clues on whether US interest rates will rise next month.

Expectations that the Fed is on track to increase rates for the first time in nearly a decade have helped push gold to 5-1/2-year lows this year. Rising rates lift the opportunity cost of holding non-yielding bullion, while boosting the dollar.Spot gold was up 0.8pc at $1,126.38 an ounce at 1158 GMT, having touched a onemonth high at $1,129.01. US gold futures for December delivery were up $8.80 an ounce at $1,125.70.

Spot platinum was up 0.9pc at $999.75 an ounce and palladium was up 1.3pc at $602.47, though neither was far from multi-year lows reached earlier this month.

Silver was up 2.4pc at $15.18 an ounce, recouping some losses after it tumbled nearly 3pc on Tuesday, its biggest one-day loss since early July.-Reuters