Gold Higher on Short Covering, Safe-Haven Demand as FOMC Statement Looms

There is also some safe-haven buying interest in gold as the market place is still concerned about the recent turmoil in the emerging market currencies. Spot  gold was last up $12 at $1,265 an ounce, while spot silver was basiclly flat at $19.62.

The major overnight news comes from Turkey, as its central bank raised its key lending rate sharply, up to 12%, to try to stave off the deflating Turkish lira. It remains to be seen if the move by Turkey’s central bank will calm the still-anxious emerging currency markets. India’s central bank also raised its interest rates this week. So far Wednesday morning, the move by Turkey’s central bank has somewhat calmed the emerging markets. But that sentiment could change quickly.

Precious metal stocks are doing very well...as Wall Street stocks continue to fall with the Dow Index off 126 points to 15802.