CHICAGO, March 20 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange settled lower on Wednesday but rebounded after the U.S. Federal Reserve decided to keep key interest rates unchanged.
The most active gold contract for April delivery went down 4.80 U.S. dollars, or 0.37 percent, to close at 1,301.70 dollars per ounce.
The U.S. dollar index, which measures the greenback against six major peers, rose 0.08 percent to 96.49 as of 1716 GMT, shortly before the settlement of gold futures.
When the dollar rises, gold futures usually fall as gold, priced in the dollar, becomes more expensive for investors holding other currencies.
However, during the ensuing electronic trading, after the Fed announced that it decided to leave rates unchanged at the end of a two-day policy meeting, the gold futures started to recover from early losses and now trade in the positive territory.
The Fed's move has met market expectations and reflected the central bank's patient approach regarding monetary policy changes.
Following the announcement, the U.S. dollar index reversed its upturn and went down notably, which in turn supported gold in the electronic trading.
As for other precious metals, silver for May delivery was down 5.4 cents, or 0.35 percent to close at 15.318 dollars per ounce. Platinum for April delivery was up 7 dollars, or 0.82 percent, to settle at 859.60 dollars per ounce.
The most active gold contract for April delivery went down 4.80 U.S. dollars, or 0.37 percent, to close at 1,301.70 dollars per ounce.
The U.S. dollar index, which measures the greenback against six major peers, rose 0.08 percent to 96.49 as of 1716 GMT, shortly before the settlement of gold futures.
When the dollar rises, gold futures usually fall as gold, priced in the dollar, becomes more expensive for investors holding other currencies.
However, during the ensuing electronic trading, after the Fed announced that it decided to leave rates unchanged at the end of a two-day policy meeting, the gold futures started to recover from early losses and now trade in the positive territory.
The Fed's move has met market expectations and reflected the central bank's patient approach regarding monetary policy changes.
Following the announcement, the U.S. dollar index reversed its upturn and went down notably, which in turn supported gold in the electronic trading.
As for other precious metals, silver for May delivery was down 5.4 cents, or 0.35 percent to close at 15.318 dollars per ounce. Platinum for April delivery was up 7 dollars, or 0.82 percent, to settle at 859.60 dollars per ounce.
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