Reuters reports that the Federal Reserve will start trimming its monthly bond purchases in November with plans to end them in 2022, it said in a statement at the end of a two-day meeting.

 

Spot gold was down 0.9% at $1,770.61 per ounce at midweek, marginally paring losses after the Federal Reserve's decision. It had earlier hit its lowest since October 13 at $1,757.63.

 

"Gold coming into the meeting was kind of preparing for the worst and that's why it was down at around $1,758 since then," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

 

"We will wait before we establish any positions on gold, on either the long or short side, and don't expect too much movement because we do have the next jobs figure (this week)."

 

Ultra-loose US monetary policy has helped drive gold sharply higher since the financial crisis of the late 2000s, with low-interest rates cutting the opportunity cost of holding non-yielding assets and inflation fears stoking demand for a hedge.

 

Silver fell 0.4% to $23.43 per ounce, platinum slid 0.7% to $1,030.94 and palladium shed 0.6% to $1,999.77, Reuters reported.