Gold rises ahead of Fed rate announcement

CHICAGO, Jan. 31 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as investors prepare for the Federal Open Market Committee (FOMC) meeting announcement.

The most active gold contract for April delivery rose by 16.50 U.S. dollars, or 0.80 percent, to close at 2,067.40 dollars per ounce.

Shortly after the floor trading of gold closes, the Federal Reserve monetary policy meeting concluded with a statement, stating that the Fed decided to maintain the federal funds rate steady, as expected.

In considering any adjustments to the federal funds rate, the Fed will carefully assess incoming data, the evolving outlook, and the balance of risks, the statement said. The Fed did not expect it will be appropriate to reduce the rate until it has gain greater confidence that inflation is moving sustainably toward 2 percent.

Economic data released on Wednesday supported gold. The Automated Data Processing Inc. monthly national employment report showed the U.S. economy added 107,000 private sector jobs in January, down from the month prior.

The Chicago Business Barometer, also known as the Chicago PMI, fell by 1.2 index points to 46 in January. Economists forecast a 48 reading.

Silver for March delivery fell by 5.60 cents, or 0.24 percent, to close at 23.169 dollars per ounce. Platinum for April delivery rose 0.90 dollars, or 0.10 percent, to close at 932.60 dollars per ounce.