2019.06.1914:48:00UTC+00Gold Settles Lower For The Session, But Edges Up After Fed Statement

Gold futures ended lower for the session on Wednesday, ahead of the Federal Reserve monetary policy statement, but edged up after the Fed held rates and said it will "closely monitor" the economy in light of growing "uncertainties."

The dollar index, which was around 97.40 in early afternoon trades, dropped to 97.10 after the Fed commented about economic "uncertainties" and said it will act as appropriate to sustain economic expansion.

Gold futures for August ended Wednesday's session with a loss of $1.90, or about 0.1%, at $1,348.80 an ounce, but rose to $1,360.00 an ounce post release of the policy.

It was last seen hovering around $1,354.00 an ounce.

Silver futures for July ended down $0.035, at $14.958 an ounce, while Copper futures for July settled at $2.6805 per pound, down $0.0225 from previous close.

Gold prices rose to 14-month high last Friday amid growing worries about the global economy due to trade related issues.

Today, the Fed announced its widely expected decision to leave interest rates unchanged.

The accompanying statement said the Fed continues to see a sustained economic expansion, a strong labor market, and inflation near its 2% target as the most likely outcomes but noted uncertainties about this outlook have increased.

"In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion," the Fed said.

The line in the statement mirrors the pledge Powell made in a speech earlier this month, which helped spark expectations of a near-term interest rate cut.

Notably, the Fed also omitted its reference to remaining "patient" when determining future changes to interest rates.