Gold futures declined on Wednesday mainly in reaction to the US Federal Reserve’s decision to continue its “Operation Twist” program till the end of the current year. US Fed’s “Operation Twist” program comprises of twisting the yield curve by selling short term securities while buying long term securities. The US Federal Reserve also decided to keep its interest rates unchanged. US Federal Reserve’s Chairman Ben Bernanke defended the quantitative program in the press conference on Wednesday.

Gold futures contract for August delivery fell 0.5 percent or $7.40 to $1,615.80 per ounce on the Comex division of the New York Mercantile Exchange. According to analysts the effect of Fed’s decision was already reflected in the market. US Fed also reduced its economic growth outlook and inflation forecasts and also said that the unemployment rate will remain above the level of 8 percent in the current year.

Among other base metals, silver futures contract for July delivery fell 0.1 percent or $0.02 to $28.39 per ounce while copper futures contract declined 1.3 percent or $0.05 to settle at $28.39 per ounce.

Platinum futures contract for July delivery plunged 0.9 percent or $13.70 to settle at $1,466.80 per ounce while its sister metal palladium dropped 1.6 percent or $9.90 to close at $619.50 per ounce on NYMEX.