Investing.com - Gold futures posted slight gains on Wednesday after the Federal Reserve cut its bond-buying program by $10 billion but reaffirmed its plans to keep interest rates at current rock-bottom levels for a while longer after it ends stimulus measures.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at 1,273.50 a troy ounce during U.S. trading, up 0.12%, up from a session low of $1,266.60 and off a high of $1,275.70.
The August contract settled down 0.26% at $1,272.00 on Monday.
Futures were likely to find support at $1,2508.00 a troy ounce, Tuesday''s low, and resistance at $1,285.10, Monday''s high.
The Federal Reserve on Wednesday said it was leaving its benchmark interest rate unchanged at 0.00-0.25% but said it would cut its monthly bond-buying program to $35 billion from $45 billion due to an improving economy.
Fed bond purchases support gold by weakening the dollar, as the two assets tend to trade inversely with one another, and news of their dismantling often weakens the yellow metal.
Still, gold found room to rise on Wednesday as the Fed pointed out once bond purchases end, rates won''t rise immediately afterwards, the Fed''s rate setting body, the Federal Open Market Committee, said in a statement earlier.
"The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee''s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored," the Fed said.
"The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run."
Meanwhile, silver for July delivery was up 0.46% at $19.822 a troy ounce, while copper futures for July delivery were up 0.09% at $3.064 a pound.
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