Gold Is Little Changed After Fed Trims Stimulus

NEW YORK (AP) -

Gold prices were little changed Wednesday after the Federal Reserve announced a long-expected decision to slightly reduce its bond purchases.

Gold futures edged up $4.90, or 0.4 percent, to $1,235 an ounce. Silver rose, but other metals futures fell.

Investors have long anticipated that the Fed will start pulling back on its economic stimulus as the economy strengthens; the only question was when and by how much.

The Fed said Wednesday that it will reduce its bond purchases from $85 billion to $75 billion a month beginning in January, citing a stronger jobs market. The Fed said it would still keep short-term interest rates very low.

The bond-buying program had prompted some investors to bid up gold prices out of fear that it might cause inflation. That fear never materialized.

March silver rose 21.9 cents, or 1.1 percent, to $20.059 an ounce.

High-grade copper for March delivery fell a quarter of a penny, or 0.1 percent, to $3.319 a pound. March palladium fell $1.60, or 0.2 percent, to $699.45 an ounce, and January platinum fell $1.90, or 1.9 percent, to $1,342.70 an ounce.

Agricultural futures fell broadly.

Corn for March delivery fell 1.75 cents, or 0.4 percent, to $4.25 a bushel, January soybeans fell 22.5 cents, or 1.7 percent, to $13.24 a bushel. March wheat fell 7 cents, or 1.1 percent, to $6.1275 a bushel.