Gold Continues Falling on FRS Decision Not to Change Rates

Gold futures extended their losses from Tuesday's regular session into electronic trading, but pared declines after the U.S. Federal Reserve decided to leave overnight interest rates unchanged at 5.25%.

"The economy is still at risk to inflation, the Fed did not raise rates and thus it can foster the opportunity to fall behind the inflation fighting campaign, especially if the inventory of homes decreases and if energy prices escalate," he explained.

The February contract for gold futures last traded at $634.30 an ounce, down 50 cents in electronic trading after reaching a low of $630.90 earlier.