Gold futures fall as U.S. dollar strengthens before Fed statement

CHICAGO, May 2 (Xinhua) --- Gold futures on the COMEX division of the New York Mercantile Exchange declined to a two-month low on Wednesday, as the U.S. dollar remained strong before the gold market closed.

The most active gold contract for June delivery fell 1.2 U.S. dollars, or 0.09 percent, to close at 1,305.6 dollars per ounce.

The U.S. dollar index, which measures the buck against six rivals, went up 0.36 percent to 92.79 as of 1800 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall.

However, the U.S. dollar index decreased later as investors were digesting the latest Federal Reserve statement. It was down 0.15 percent at 92.314 in late trading.

The U.S. central bank kept the interest rates unchanged on Wednesday after concluding its two-day monetary policy meeting, in line with market expectations.

The statement released after the meeting, however, showed Fed's confidence over inflation, acknowledging that core inflation rate has moved close to the central bank's 2-percent target.

As for other precious metals, silver for July delivery added 24.8 cents, or 1.54 percent, to settle at 16.375 dollars per ounce. Platinum for July was down 0.4 dollars, or 0.04 percent, to close at 893.8 dollars per ounce. Enditem