By Virginia Harrison, MarketWatch
MADRID (MarketWatch) — Gold futures were on track for a third session of losses in electronic trading on Wednesday, as risk appetite returned to markets and investors ploughed into equities.
Extending losses from Asian trade, gold for April delivery GCJ2 -2.46% dropped $36.80, or 2.2%, to $1,657.20 an ounce on the Comex division of the New York Mercantile Exchange during European trading hours.
The metal extended losses from Tuesday’s North American session after the Federal Reserve left interest- ates at record lows while providing few clues on further easing measures.
Fed officials also said labor-market conditions have improved and a rise in inflation is temporary.
A reduced likelihood of additional monetary stimulus can be viewed as a negative for gold, as the metal is seen as a safe store of value and benefits when inflation fears rise.
The broader metals complex mostly fell in Asian trading on Wednesday, but platinum inched higher.
Silver for May delivery SIK2 -2.25% lost 53 cents, or 1.6%, to $33.01 an ounce.
May copper HGK2 -1.24% shed 4 cents, or 1%, to $3.86 a pound.
April platinum PLJ2 -0.92% fell $13.40 to $1,688.40 an ounce, while sister metal palladium for June delivery PAM2 -1.07% dropped $3.40 to $705.45 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
