Daily Gold Update

Source: Marketwatch

New York— Gold and other metals futures closed lower Wednesday, weighed by lingering concerns that Chinese moves to slow its economic growth would lessen demand for a range of natural resources. Gold for February delivery dropped $13.80, or 1.3%, to $1,084.50 an ounce at the close by the close of floor trading on the New York Mercantile Exchange. The April contract also fell $13.80, or 1.3%, to $1,085.70 an ounce.

After the Federal Reserve's statement on U.S. monetary policy, gold traded electronically stuck near its floor trading close. The central bank, as expected, kept its federal-funds rate unchanged on Wednesday and said it would keep them exceptionally low for "for an extended period." Gold futures were more influenced by Chinese lending fears. "The gold market is still being hurt by indications of slightly tighter monetary policy in China," said James Steel, gold analyst at HSBC in New York. "This year Chinese monetary changes seem to be gaining an influence in gold. We're not only looking at the Fed as we used to." See full story.