Gold erases gains after Fed decides to keep QE intact
Gold prices eased earlier gains on Wednesday after the Federal Reserve signaled that is planed to keep its maintain its massive bond-buying campaign intact.
Spot gold last traded lower at $1,342 an ounce. Earlier it rose as much as 1.1 percent to a session high of $1,358.06 an ounce.
The metal hit a five-week high of $1,361.60 on Monday, before retreating. A break above the 2013 resistance line of $1,359.52 will confirm that another leg upward is being made, Commerzbank technical analysts said.
U.S. gold futures for December delivery settled $3.80 higher at $1,349.30 an ounce.
"Gold has always been right up there as the commodity that is most exposed to any Fed decision to cut back on bond purchases," said Song Seng Wun, an economist at CIMB.
Investors will continue to monitor U.S. data in coming weeks, where continued weakness could add weight to the view that this month's political showdown in Washington has caused a setback in the nascent recovery.