By Ira Iosebashvili 

Gold prices rose Wednesday, hours ahead of what many believe will be the Federal Reserve's first interest-rate increase of 2018.

Gold for April delivery was recently up 0.7%, at $1,321.50 a troy ounce, on the Comex division of the New York Mercantile Exchange.

Market participants expect the Fed to announce a 25 basis point interest-rate increase at the conclusion of its meeting Wednesday afternoon. Many will also be looking for more clarity on whether the central bank plans to tighten monetary policy at a faster clip later this year to prevent the economy from overheating.

Signs that the central bank may be growing more hawkish are likely to weigh on gold, which struggles to compete with yield-bearing investments when borrowing costs rise.

In base metals, copper for May delivery was recently up 0.2%, at $3.04 a pound.

Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

(END) Dow Jones Newswires

March 21, 2018 11:49 ET (15:49 GMT)