Gold Pares Gains, Oil Loses More Ground After Fed Announcement

By Myra P. SaefongMarketsMarketWatch Pulse

Gold futures pared gains in electronic trading Wednesday, while oil futures lost more ground on the New York Mercantile Exchange after the Federal Open Market Committee left interest rates unchanged but appeared to be more open to a rate increase in September. The statement supported the U.S. dollar which, in turn, pressured dollar-denominated prices for gold and oil. Gold for December delivery was at $1,334 an ounce in electronic trading after settling higher for the session, at $1,334.50 ahead of the announcement. September oil was down $1.03, or 2.4%, at $41.89 on Nymex, ahead of its settlement on Nymex. It was trading at $42.01 shortly before the Fed news.

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