Forexpros - Gold futures edged higher on Wednesday, as markets eyed the Federal Reserve’s rate statement later in the day, shrugging off negative developments surrounding Greece’s sovereign debt crisis.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,667.65 a troy ounce during early European morning trade, adding 0.2%.      

It earlier rose by as much as 0.4% to trade at a session high USD1,670.35 a troy ounce. 

Futures were likely to find support at USD1,645.15 a troy ounce, the low of January 20 and resistance at USD1,681.65, the high from January 23. 

Market focus shifted to the Federal Reserve’s policy-setting meeting later in the day for indications on how Fed officials see Europe's debt problems impacting the U.S. economy, as well as the need for further stimulus measures. 

According to market participants, any signs that interest rates will stay lower for longer could put some pressure on the U.S. dollar, which is positive for gold prices. Indications of further easing initiatives in the U.S. are also considered bullish for prices.

The Fed was also expected to provide, for the first time in the central bank's history, interest rate forecasts to markets, as well as its quarterly economic projections timed to coincide with a news conference by Fed Chairman Ben Bernanke.

Meanwhile, debt-strapped Greece was clinging to hope of a last minute bond swap deal to avoid a default after euro zone officials rejected a final offer from the country's private bondholders.

An agreement is necessary if Greece is to get the next tranche of bailout funds that would prevent a devastating debt default. Greece does not have enough money to cover a EUR14.5 billion bond repayment due March 20.

Providing further support for prices, gold buying in top jewelry consumer India picked up ahead of the start of the country’s wedding season, which began last week and lasts through April, after pausing for a few weeks deemed inauspicious for nuptials. 

Gold jeweler is a popular gift at marriages and festivals in India.     

Elsewhere on the Comex, silver for March delivery rose 0.63% to trade at USD32.17 a troy ounce, while copper for March delivery gained 0.43% to trade at USD3.824 a pound.

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