Gold slips ahead of Fed Statement

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.

Source: MarketWatch