Gold fell from the highest in more than six-months as investors weighed whether the Federal Reserve will signal a new round of measures to boost the U.S. economy tomorrow.
The Federal Open Market Committee plans to release a statement tomorrow after a two-day meeting. The metal surged 70 percent from the end of December 2008 to June 2011 as the Fed kept borrowing costs at a record low and bought $2.3 trillion of debt in two rounds of so-called quantitative easing.
“People are getting cold feet ahead of the announcement,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “Many investors are waiting on the sidelines.”
Gold futures for December delivery slid 0.1 percent to settle at $1,733.70 an ounce at 1:43 p.m. on the Comex in New York. Earlier, the metal reached $1,749.50, the highest for a most-active contract since Feb. 29, amid expectations that the FOMC will announce stimulus measures and as a German court cleared the way for a euro-area rescue fund.
Silver futures for December delivery fell 0.8 percent to $33.292 an ounce in New York after reaching $34.145, the highest since March 12.