Gold prices fell more than 1 percent, as investors expect the Fed to reduce incentives. Market participants expect the U.S. central bank on Wednesday announced a modest - about $ 10 billion a month - reducing the amount of buying bonds from the current $ 85 billion.

Gold rose in price in recent years thanks to the policy of stimulating the central banks of several countries, reaching in 2011 a record high of $ 1,920 an ounce, but this year, some analysts have lowered forecasts for gold due to the expected reduction of incentives for the Fed. According to Goldman Sachs, by the end of the year prices will drop to $ 1,050.

Physical demand in the largest gold consumer India and China is growing slowly due to the volatility of prices. Futures in Shanghai on Wednesday fell by 1 percent.

Government of India has increased the import duty on gold jewelry and 15 percent to 10, setting it higher duty on gold to protect local jewelers.

The cost of the October gold futures on COMEX today dropped to $ 1281.80 per ounce.