LONDON: Gold edged higher on Wednesday af ter the Bank of Japan adopted a target for long-term interest rates, and further gains were expected if the US central bank holds back from a rate increase.

Spot gold was up 0.9 per cent at $1,326.87 an ounce by 1405 GMT, while US gold futures climbed 1pc to $1,331 an ounce. Fed Chair Janet Yellen is scheduled to conclude the US central bank`s meeting with a news conference starting at 1830 GMT on Wednesday.

Spot gold remains neutral in a range of $1,313-$1,319 per ounce, and only an escape from this zone could give it a direction, Reuters analyst Wang Tao said. Spot silver gained 1.9pc to $19.62 an ounce. Platinum climbed 2.4pc to $1,051.80 and palladium rose 1.3pc to $690.-Reuters