Gold futures dropped Wednesday morning as investors switched back into the dollar a day after the Federal Reserve raised interest rates.
Gold erased all of its gains from Tuesday. That came as the dollar sagged in advance of the Fed's widely expected decision to lift the federal funds target rate to 1.75 percent from 1.50 percent, the third hike since June.
December gold at 9:19 a.m. EDT (1319 GMT) was down $2.80 at $407.30 an ounce, trading from $412 to $406.10. The high matched the 20-day peak set Tuesday, when the contract settled $3.10 higher.
December silver was trading at $6.31 an ounce Wednesday morning. Spot gold was quoted at $405.15/5.90, down from $409.15/9.90 late Tuesday after the Fed rate hike. London's morning fix was $407.50 on Wednesday.
Brokers said most of the selling was coming through one futures commission merchant and an investment bank.
Gold bounced from the 200-day moving average around $405.50 on Monday. Traders continue to expect technical support and physical demand to keep it from falling below $400 soon.
December silver was off 6.3 cents at $6.31 an ounce, trading from $6.405 to $6.275. Spot silver fetched $6.26/29, down from the close at $6.35/38 and Wednesday's fix at $6.30. October platinum slipped $6 to $846 an ounce. Spot platinum was at $839.00/844.00. December palladium was off $3.55 at $207 an ounce. Spot palladium was priced $205.00/209.00.