Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
The interest on excess reserves now stands at 1.8%, a 30 basis point cut compared with the 25 basis point reduction for the benchmark funds rate.The Fedread more
The decision to cut rates followed a monthslong pressure campaign by Trump, who often criticized Chairman Jerome Powell by name as he called for lower interest rates.Politicsread more
Powell said on Wednesday that the Fed may have to resume regular balance sheet growth to help ease liquidity markets.The Fedread more
Stocks traded lower on Wednesday as traders digested the Federal Reserve's latest decision on U.S. monetary policy.US Marketsread more
The Federal Reserve dialed up its growth expectations slightly while keeping its inflation projection unchanged.Marketsread more
Federal Reserve Chairman Jerome Powell pledged that the central bank would engage in a "sequence" of interest rate cuts if conditions warrant, but he doesn't see that as...The Fedread more
This is a comparison of Wednesday's FOMC statement with the one issued on July 31 after the Fed's previous policymaking meeting.The Fedread more
The Federal Reserve cut rates Wednesday by 25 basis points to a range of 1.75% to 2.00%.The Fedread more
The Fed has become increasingly divided, with three officials voting against the Fed's quarter-point cut to the fed funds target rate range.Market Insiderread more
Gold fell on Tuesday as reinforced expectations of an increase to U.S. interest rates next month pushed the dollar higher, though political and economic uncertainty in Europe and the United States are likely to offer continued price support.
The dollar strengthened after Federal Reserve members pointed to the potential for higher U.S. rates next month, making commodities priced in the currency more expensive for non-U.S. buyers.
"Gold is capped by the likelihood that U.S. monetary policy will be tighter at some stage, potentially in March," said Societe Generale analyst Robin Bhar.
"There is a lot of political uncertainty, there are safe-haven flows going into gold."
Bhar added that gold is also an investment hedge against corrections in what look to be overvalued equities.
Investor demand for gold can be seen in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, holdings of which have risen by more than 5 percent to 27.044 million ounces since Jan. 31.
Major U.S. indices — the Dow Jones Industrial Average and the — have hit consecutive record highs in recent days.
"Gold's resilience is all the more impressive considering U.S. equities are setting record after record, while the dollar is also fairly strong," said INTL FCStone analyst Edward Meir.
Meir added that support comes from a "myriad political and economic uncertainties" that lie ahead in 2017.
Traders' attention on Tuesday will focus on speeches by a number of Federal Reserve presidents, looking for clues on the timing of U.S. rate rises.
Also on the radar is President Donald Trump's address to Congress on Feb. 28, which analysts and traders hope will offer detail on infrastructure spending and tax cuts.
Technical support is around the 21-day moving average near $1,221 an ounce, while $1,250 presents a major barrier, analysts say. A break higher will meet Fibonacci resistance at $1,255.
Elsewhere, was down 0.17 percent at $17.98 an ounce, rose 0.06 percent to $1001.10 and gained 0.68 percent to $777.25.