Gold prices fell on Wednesday, losing ground as investors jumped back in to equities ahead of the key Federal Reserve statement later in the day.
Gold for February delivery GCG5, -0.25% dropped $4, or 0.3%, to $1,287.70 an ounce, while March silver futures SIH5, -0.46% lost 7 cents, or 0.4%, to $18.01 an ounce.
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 safe-haven plays.
The Fed will release a policy statement at 2 p.m. Eastern, with traders looking for any hint as to when the central bank might start raising interest rates. Read: Doubts grow about mid-year rate hike.
Currency analysts at Brown Brothers Harriman downplayed the importance of the meeting.
“If the Fed wants to prepare the market for a potential rate hike in the middle of the year, the March meeting, which will see updated macro-economic forecasts and a press conference, is more important,” they said in a note cited by Kitco.
In other metals, platinum for April delivery PLJ5, -0.10% rose 20 cents to $1,264.50 an ounce, while palladium for March delivery PAH5, +0.80% gained $6.60 to $787.35 an ounce.
High-grade copper for March delivery HGH5, +1.08% tacked on 2 cents to $2.48 a pound.