Gold prices fell on Wednesday as the U.S. central bank reiterated its commitment to raising interest rates some time in the latter part of the year.
Gold for February delivery dropped $5.80, or 0.5%, to settle $1,285.90 an ounce but the precious metal pared some of its earlier losses after the Federal Reserve™s policy statement. March silver futures recovered to close flat at $18.09 an ounce.
The Fed remained upbeat about the economy, noting its œsolid growth and œstrong job gains. The central bank officials repeated that inflation is likely to reach the 2% target and that the Federal Reserve can be œpatient in tightening the monetary policy, according to the statement.
On Tuesday, gold prices enjoyed another move higher, after a sharp, unexpected fall in U.S. durable-goods orders hammered equities and spurred demand for haven plays.
Source : MarketWatch