- Gold fell after the Federal Reserve announced no change to benchmark interest rates.
- Earlier, gold had traded higher
- The Fed's statement indicated that it expects inflation pressures to rise over the course of the year.
Gold prices slightly declined on Wednesday after the Federal Reserve announced interest rates would not be changed following Janet Yellen's final meeting as chair.
While the Fed kept benchmark interest rates at their current level, its statement indicated that it expects inflation pressures to rise over the course of the year.
Spot gold was down 0.08 percent to $1,337.73 per ounce by 2:17 p.m. EST. In the previous session, it touched its lowest since Jan. 23 at $1,334.10 an ounce.
U.S. gold futures for April delivery rose 0.08 percent to $1,341 per ounce.
Gold got a boost as the dollar fell, putting the currency on track for its biggest monthly drop in nearly two years as U.S. President Donald Trump's first State of the Union address failed to offer any comfort to ailing dollar bulls.
A weaker dollar makes commodities priced in the greenback cheaper for buyers using other currencies.
Gold prices were on track for a third consecutive monthly gain and are up 3.1 percent so far in January, their best month since August, largely due to weakness in the dollar.
Earlier, gold had traded higher. Spot gold was up about 0.2 percent while gold future were up 0.3 percent.Hedge funds and money managers raised their net long position in COMEX gold contracts to a four-month high, data showed on Friday.
In other precious metals, silver climbed 0.37 percent to $17.165 per ounce, after hitting a one-week low of $17.03 earlier in the session.
Palladium sunk 2.61 percent at $1,025.24 per ounce, after falling nearly 3 percent in the previous session.
Platinum fell 0.05 percent to $995.50 per ounce. It is up 8.4 percent for the month so far, on track for its best month since January 2017. It hit a one-week low the session before.