Gold futures drop as traders await Fed rate guidance

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as investors kept up their vigil for the Federal Reserve's summer symposium on Friday.

The most active gold contract for December delivery fell 16.4 U.S. dollars, or 1.22 percent, to settle at 1,329.7 dollars per ounce.

Precious metals have vacillated amid shifting expectations about the U.S. Federal Reserve's interest-rate policy, ahead of a closely watched retreat in Jackson Hole, Wyo., where Fed Chairwoman Janet Yellen will speak on Friday.

Economists have said the U.S. central bank remains very data-dependent as it looks ahead to the final policy meetings of 2016, but that's done little to dissuade market speculation.

Gold was put under pressure as the U.S. Dollar Index rose by 0.25 percent to 94.77 as of 1700 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Traders are waiting for the release of several items of key economic data including the durable goods and weekly jobless claims on Thursday, and gross domestic product report on Friday.

Silver for September delivery fell 36.6 cents, or 1.93 percent, to close at 18.556 dollars per ounce. Platinum for October delivery dropped 29.1 dollars, or 2.62 percent, to close at 1,082.2 dollars per ounce. Enditem