Gold little changed on Fed plan

AP News
Posted: Sep 21, 2011 4:24 PM
Gold little changed on Fed plan

An expected move by the Federal Reserve to take new steps to stimulate the economy had little impact on gold prices Wednesday.

Trading for gold and other precious metals closed before the Fed announcement of a program to drive down long-term interest rates. A drop in borrowing costs will likely push up the prices of gold and other metals, analysts say.

Traders made few large moves ahead of the Fed's announcement. Gold finished at $1,808.10 an ounce, down less than 0.1 percent from Tuesday's close.

Other metals were mixed. Silver rose less than a percent to end at $40.46 an ounce. Palladium dropped 0.7 percent to $712.85. Copper, which is often seen as a bet on the direction of the broad economy, rose 1 percent to finish at $3.7640.

Grains were mixed. Contracts for wheat and soybeans each fell by more than 1 percent. Corn contracts fell 0.7 percent to $6.8575.

In energy trading, benchmark crude lost $1 to end at $85.92 per barrel in New York. Heating oil fell 2.74 cents to $2.9342 per gallon. Gasoline futures lost 3.49 cents at $2.6665 a gallon. Natural gas dropped 6.8 cents to finish the day at $3.730 per 1,000 cubic feet.