Gold futures fell Wednesday, retreating further from the $900-an-ounce mark as investors awaited word on any fresh moves the Federal Reserve may have to resuscitate the U.S. economy. The Fed's Federal Open Market Committee, culminating a two-day meeting later Wednesday, may not commit to purchase long-term U.S. Treasurys, analysts said, a move that could curtail some of the dollar's recent losses. A stronger greenback tends to push gold prices lower. Separately, Germany, the world's second-largest official gold holder after the U.S., on Wednesday denied rumors that it is selling gold from its vaults. Extending losses from the previous session, gold for February delivery was last down $10.30, or 1.2%, at $889.20 an ounce on the Comex division of the New York Mercantile Exchange. The benchmark contract had topped $900 on Monday, ending at the highest level in four months. Instead of announcing its intention to buy long-term Treasurys, the Fed's "more likely to communicate its willingness to do so only as a defensive plan of action," said Ashraf Laidi, chief market strategist at London-based CMC Markets. At its last meeting, the Fed said it's "evaluating the potential benefits of purchasing longer-term Treasury securities" as well as "large quantities" of agency debt and mortgage-backed securities. Investors have been concerned that the Fed's move to buy more debt will devalue the dollar, which would in turn enhance gold's appeal as an investment alternative. The Fed also announced at its last meeting that it will maintain interest rates at "exceptionally low" levels and will do so "for some time." For traders and investors, this "remains a fundamental reminder for the market to sell the U.S. currency at each bout of improved risk appetite," Laidi told clients. In foreign-exchange dealings Wednesday, the dollar moved slightly lower against rival currencies. Traders sold the dollar as hopes that Congress will pass the Obama administration's stimulus package encouraged risk trading. See Currencies. Later Wednesday, the House of Representatives is widely expected to approve President Barack Obama's proposed $825 billion plan aimed at boosting the economy through a combination of tax cuts and big spending. In other metals trading Wednesday, March copper rose 3.5% to $1.5375 a pound, while March silver fell 1.2% to $12.03 an ounce. March palladium was flat at $191 an ounce, while April platinum dipped to $957 an ounce, off 0.1%. Holdings in the SPDR Gold Trust , the largest exchange-traded gold fund, stood at 832.88 tons, unchanged from a day ago, according to the latest data from the ETF. Germany sells gold? Germany's central bank, the Bundesbank, said Wednesday it isn't selling gold. Bundesbank spokeswoman Madleen Petschmann said market rumors that the Bundesbank had increased its activity in the gold market were unfounded. Earlier Wednesday, rumors circulated in the markets that the Bundesbank was selling gold, possibly to help fund a second fiscal stimulus worth around EUR50 billion. The ruling Christian Democratic Union party's budget spokesman Steffen Kampeter has proposed that the Bundesbank should sell some of its gold reserves, which amount to around 3,400 tons, to help reduce debt. Finance Minister Peer Steinbrueck rejected the proposal in Wednesday's Berliner Zeitung newspaper, saying those politicians who proposed gold sales in the past met resistance at the Bundesbank.

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