Gold eases after U.S. central bank comments

Sydney-Australia (Jan 29)  Gold prices eased overnight 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 0.5% to settle US$1,285.90 an ounce but the precious metal pared some of its earlier losses after the Federal Reserve’s policy statement.

The Fed remained upbeat about the economy, noting its “solid” growth and “strong job gains.” The central bank officials repeated that inflation is likely to reach the 2% target and that the Federal Reserve can be “patient” in tightening the monetary policy, according to the statement.

In other metals, March silver futures recovered to close flat at US$18.09 an ounce.

Platinum for April delivery dropped US$5.80 to US$1,258.50 an ounce, while palladium for March delivery gained US$15.55 to US$796.30 an ounce.

Source: Proactive Investors Australia