Gold extended losses on Wednesday after the Federal Reserve said it will remain "patient" with regard to any interest rate increase decisions. After its first policy-setting meeting of the year, the Federal Open Market Committee (FOMC) said the US economy is on track despite turmoil in other markets around the world. The statement no longer contains the closely watched "considerable time" phrase in connection to interest rates.
Spot gold was down 0.6 percent at $1,284.11 an ounce by 2:57 pm EST (1957 GMT), trading in a $13 range. It hit a five-month high of $1,306.20 last week, before retreating on stronger risk appetite after the European Central Bank announced liquidity measures. US gold futures settled down $5.80 at $1,285.90 an ounce. Among other precious metals, spot silver was down 0.3 percent at $17.97 an ounce. Palladium gained 2 percent at $793.50 an ounce while platinum was down 0.4 percent at $1,253.50 an ounce.