Daily Gold Update

Source: MarketWatch

New York— Gold futures fell Wednesday, retreating further from the $900-an-ounce mark as the U.S. dollar strengthened after the Federal Reserve said it's prepared to purchase long-term Treasury securities. Separately, Germany, the world's second-largest holder of gold after the U.S., on Wednesday denied rumors that it is selling gold from its vaults to make up for its big deficit. Gold for February delivery was last down $3.80, or 0.4%, to $884.40 an ounce in late North America electronic trading. It earlier ended floor trading down $11.30, or 1.3%, at $888.20 an ounce on the Comex division of the New York Mercantile Exchange. Gold's floor trading closed before the Fed's announcement. The benchmark contract had topped $900 on Monday, ending at the highest level in four months. It has fallen about $20 since then.

At the conclusion of a two-day meeting Wednesday afternoon, the Fed said it's ready to purchase longer term Treasury securities if needed to improve conditions in private credit markets. The Federal Open Market Committee kept its interest rate target in a range of zero to 0.25%, as expected. It said it would continue to flood the financial system with money.See full story.