(Bloomberg) -- Spot gold pared declines after the Federal Reserve left interest rates unchanged and repeated that it anticipates rates will rise gradually.
In a statement on Wednesday following a two-day meeting, the Federal Open Market Committee provided little direction on when it might next raise borrowing costs, as officials grapple with the uncertainty created by a new presidential administration.
“Overall, the market seems relieved that there was nothing threatening in terms of the pace of hikes or shrinking the balance sheet,” Tai Wong, director of commodity products trading at BMO Capital Markets in New York, said in an e-mail.
Gold capped the biggest monthly gain since June on Tuesday as concerns over the economic impact of President Donald Trump's policies spurred speculation that the Fed would be more cautious in tightening monetary policy. Traders see a 76 percent chance of a rate increase by July, according to Fed fund futures.
Bullion for immediate delivery fell 0.1 percent to $1,209.50 an ounce at 2:55 p.m. New York time. The metal slid as much as 1 percent earlier.
To contact the reporter on this story: Luzi Ann Javier in New York at ljavier@bloomberg.net. To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net, Joe Richter, Steven Frank
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