Gold Ends Lower Ahead Of Fed Decision

(RTTNews) - Gold futures ended lower on Wednesday, ahead of the outcome from the U.S. Federal Reserve's monetary policy meet due later today, with investors expecting the Fed may not hike rates any time soon.

While the dollar's weakness against major currencies supported gold, a positive trend in global equity markets weighed against it with no release of any significant economic data for direction.

It is widely expected that the Fed may not start hiking interest rates anytime soon, although economists expect the central bank to wind down its monthly asset purchase program, QE3.

Gold for December delivery, the most actively traded contract, shed $4.50 or 0.4 percent to settle at $1,224.90 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday.

Gold for December delivery scaled an intraday high of $1,230.40 and a low of $1,220.80 an ounce.

On Tuesday, gold futures ended up $0.10 at $1,229.40 an ounce, after declining to a two-week low of $1,222.20 an ounce intraday. While a slightly weaker greenback supported the yellow metal, stronger equity markets and speculation about an extended run for the low interest regime in the U.S. limited its upside.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged lower to 743.59 tons on Wednesday, from its previous close of 745.39 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 85.34 on Wednesday, down from its previous close of 85.41 late Tuesday in North American trade. The dollar scaled a high of 85.46 intraday and a low of 85.19.

The euro trended higher against the dollar at $1.2739 on Wednesday, as compared to its previous close of $1.2734 late Tuesday in North American trade. The euro scaled a high of $1.2770 intraday and a low of $1.2724.

In economic news, industrial production in Japan was up a seasonally adjusted 2.7 percent on month in September, the Ministry of Economy, Trade and Industry said in Wednesday's preliminary reading. That beat forecast for an increase of 2.2 percent following the 1.9 percent contraction in August.

On a yearly basis, industrial production in Japan added 0.6 percent - again beating forecast for a decline of 0.1 percent following the 3.3 percent drop in the previous month.