Gold futures fell to their lowest on Wednesday in eight weeks as the US Federal Reserve said that US economy is improving and decided not to go for further monetary policy easing. Stronger dollar also kept commodities under pressure. US Federal Reserve’s official decided to keep the interest rate unchanged to its ever low in reaction to positive jobs data. The US Fed also kept the stance that the current inflation is temporary.

Gold futures contract for April delivery fell 3 percent or $51.30 to settle at $1,642.90 per ounce on the Comex division of the New York Mercantile Exchange. The gold fell to its lowest since January 13^th, 2012. According to one analyst the closing of gold futures below $1,650 per ounce means further correction in the short term.

Among other metals silver futures contract for May delivery fell 4.2 percent or $1.40 to settle at $32.18 per ounce while copper futures contract for the same month slipped 1.4 percent or $0.05 to settle at $3.85 per pound.

Platinum future contract for April delivery declined 1.6 percent or $26.50 to $1,675.30 per ounce while its sister metal palladium for June delivery plunged 1.6 percent or $11.40 to settle at $697.45 per ounce on NYMEX.