Gold falls for fifth session ahead of Fed's statement

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday for a fifth straight session as the U.S. Federal Reserve started a two-day policy meeting to discuss the pace of raising its interest rate.

The most active gold contract for February delivery lost 13.4 U. S. dollars, or 1.11 percent, to settle at 1194.3 dollars per ounce.

The meeting notes, which are expected to be released on Wednesday at 2:00 p.m. U.S. Eastern Time, will give traders an indication of how much longer the U.S. central bank will keep interest rates at near-zero.

Gold futures also came under pressure from concern that Russia might sell its gold reserves. The Russian ruble tumbled over the weekend and lost 8 percent of its value Monday, as oil prices plummeted.

Russia's central bank announced early Tuesday morning to raise its key interest rate to 17 percent, a dramatic move which came days after it raised the rate to 10.5 percent. Analysts say that Russia's economy depends on the price of oil remaining high. Russia's central bank spent tens of billion U.S. dollars this year trying to slow the ruble's decline, triggering speculation that Russia might be forced to sell reserves of the precious metal.

The gold prices may have been prevented from falling further as analysts noted a fall in the U.S. dollar index spot, a measure of the dollar against other major currencies. Commodities like gold that trade in dollar terms often benefit from a weaker greenback.

Silver for March delivery lost 81.1 cents, or 4.90 percent, to close at 15.752 dollars per ounce. Platinum for January delivery lost 18.4 dollars, or 1.51 percent, to close at 1196.5 dollars per ounce.