Precious metals prices fall ahead of Fed decision

Precious metals prices were lower Tuesday in New York.

December gold dropped $4.80 to $787.80 per troy ounce on the chance that the US Federal Reserve will not act to change interest rates Wednesday rather than cutting rates, as many analysts have believed it will do.

Speculation is that if interest rates are held steady, the dollar will strengthen and investors won’t be as interested in putting their money in gold instead.

In addition, the price of crude oil also fell, which also dampened demand for metals.

Silver for December delivery was also lower, falling 10 cents to $14.33, while January platinum plummeted $24.60 to $1,440.90 per troy ounce, retreating from a record high on Monday.

December palladium dropped $3.40 to $371 per troy ounce.