Investing.com - Gold futures fell from the prior session’s three-month peak in Europe trade on Wednesday, as investors were hesitant to push prices higher ahead of the Federal Reserve’s policy statement due later in the day.
The Fed is widely expected to keep interest rates on hold at the conclusion of its two-day policy meeting later Wednesday after raising interest rates for the first time in almost a decade in December.
Investors were looking to the Fed policy statement for any indication that the bank is considering slowing the path of interest rate increases this year after recent global financial market turmoil.
A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Gold for February delivery on the Comex division of the New York Mercantile Exchange dipped $2.90, or 0.26%, to trade at $1,117.30 a troy ounce by 9:10GMT, or 4:10AM ET.
A day earlier, gold rose to $1,123.20, the most since November 3, before ending at $1,120.20, up $14.90, or 1.35%.
Prices of the precious metal are up more than 5% so far this year as investors sought refuge from turmoil in global equity markets. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Also on the Comex, silver futures for March delivery dropped 17.9 cents, or 1.23%, to trade at $14.38 a troy ounce during morning hours in London. Prices jumped to $14.58 on Tuesday, the highest since December 7.
Elsewhere in metals trading, copper edged higher to hit a three-week high as expectations for fresh central bank stimulus in Europe and Japan supported demand for growth-linked assets.
Despite recent gains, copper is down 4% so far this year as investors slashed holdings of the red metal amid persistent worries over an economic slowdown in China. The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.