Gold News & Info

Source: Marketwatch

New York— Gold futures ended slightly lower on Tuesday, pressured by speculation that the Federal Reserve might hint at mopping up some of the massive amount of money it injected in the financial system. Gold for February delivery, the most active contract, finished the session down 80 cents at $1,123.0 an ounce on the New York Mercantile Exchange. The January contract lost 90 cents to finish at $1,122.50 an ounce. Earlier, gold failed to benefit from news that U.S. production prices rose much more than expected in November, mostly due to higher energy prices. Gold is often regarded as a hedge against inflation.

Although commodity prices have rebounded this year, the U.S. central bank, faced with 10% unemployment, is widely expected to leave interest rates unchanged near zero on at the end of its two-day meeting on Wednesday. But close attention will be brought to its policy statement. "I'd be surprised if they did tweak [the statement] but some people are taking precautions," said Jeffrey Nichols, managing director of American Precious Metals Advisors. See full story.