CHICAGO, May 1 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange edged higher on Wednesday in electronic trading, after closing out the regular trading session at a one-week low, finding support after the U.S. Federal Reserve made no changes to its bond-buying program.
The most active gold contract for June delivery fell 25.9 dollars, or 1.76 percent, to settle at 1,446.2 dollars per ounce.
Prices had been lower on COMEX after a gauge of manufacturing activity in China showed a decline for March and as investors awaited monetary policy decisions from the European Central Bank, as well as the U.S. Fed. Shortly after the Fed announcement, prices edged up from the close to 1,455.1 dollars an ounce in electronic trading on GlOBEX.
The rebound in gold recently was fairly aggressive but there appeared to be a willingness on the part of more than a few bullish traders to step aside on Wednesday, at least until the Fed made their announcement, according to some market analysts.
The Fed kept the same its targeted interest rate and its bond purchase program. For the first time, it also formally stated that it could increase or decrease bond buying from the current pace as the outlook for the labor market or inflation changes, reports say.
The Fed's quantitative-easing program, which raises the risk of inflation, has helped support gold since the metal is often used as a hedge against inflation. Given that backdrop, silver for July delivery shed 84.2 cents, or 3.48 percent, to close at 23.343 dollars per ounce.