Spot gold trimmed earlier losses and U.S futures settled down modestly on Wednesday after the Federal Reserve announced that it would stay on course with its plan to trim its bond-buying program.
As Wall Street had expected, the central bank cut its monthly asset purchases to $25 billion from $35 billion, leaving it on course to end its quantitative easing program this fall. It also left its short-term interest rate target near zero and expressed only tepid encouragement about growth.
The metal was headed for a 2.2-percent monthly loss after a gain of around 6 percent in June, when international political tensions prompted investors to seek gold, often perceived as an insurance against risk.
Earlier, data showed U.S. gross domestic product grew at a 4.0 percent annual rate as activity picked up broadly after shrinking at a revised 2.1 percent pace in the first quarter. Economists had forecast the economy growing at a 3.0 percent rate.