Dollar traded mixed against major counterparts after the FOMC kept the key interest rate unchanged at 5.25%. The currency fell against Yen, whereas it strengthened against Euro. Fed maintained inflation as its key policy concern. The Federal Reserve expects moderate growth in coming months despite the problems in credit and housing markets and recent volatility in financial markets.

Bank of Spain sold 25 tonnes of gold during July with total sales of 134 tonnes in the current calendar year and 149 tonnes in the second CBGA year. Figures from the ECB suggest that sales in the CBGA year to date amount to 353 tonnes as compared to 340 tonnes in the second CBGA year during the same period. However, the European central banks gold sales during the last week dipped to mere 1.8 tonnes, which shows that the banks are in no hurry to offload their reserves.

Recent strength in Turkish lira against dollar and wedding season demand boosted Turkey’s gold bullion imports to a record high in July. However, with the weakening of lira and forthcoming Ramadan season gold demand is likely to dip.

The metal, which normally mirrors the movement in gold, deviated from it on Tuesday as firmness in crude oil prices and bounce back in copper underpinned the prices.

Further, expectations of good economic growth in the coming months also kept the silver prices buoyant. After the policy meeting the Fed said that it still expects moderate growth in coming months despite recent volatility in financial markets and problems in US credit and housing markets.