1st LD Writethru: Gold up on anticipation of U.S. rate hike

Gold futures on the COMEX division of the New York Mercantile Exchange went up Wednesday as investors began to price in an eventual interest rate increase from the U.S. central bank.

The most active gold contract for August delivery rose nine U.S. dollars, or 0.76 percent, to settle at 1,186.60 dollars per ounce.

As the U.S. economy continues to improve, investors are beginning to speculate on the timing of a hike in the interest rate. Analysts originally believed that interest rates could rise as early as June, but due to worse-than-expected jobs data in March, now predict that interest rates will rise in the fall.

The next Fed meeting is scheduled for June 15, when investors expect additional news on the timing of a rate increase, but analysts caution that a June increase in the Fed's interest rate is still unlikely.

Two key reports are expected to be released Thursday which may influence the Fed's decision: if the U.S. Department of Commerce's retail sales report due on Thursday shows positive data, and the weekly jobless claims report shows positive data, sentiment is likely to increase for an interest rate hike. Silver for July delivery gained 0.2 cents, or 0.01 percent, to close at 15.959 dollars per ounce. Platinum for July delivery rose 6.7 dollars, or 0.6 percent, to close at 1,115.2 dollars per ounce. Endite