By Polya Lesova
FRANKFURT (MarketWatch) -- Gold futures fell on Wednesday, as caution dominated sentiment ahead of the Federal Reserve's statement on U.S. monetary policy. Gold for February delivery, the most actively traded contract, dropped $3.30 to $1,095 an ounce in electronic trading on Globex. The Fed is expected to leave its federal-funds rate unchanged on Wednesday and to signal that the rate will remain at an exceptionally low level for an extended period. Traders will be watching to see if there are any changes in the Fed's outlook for the American economy. A report on new home sales for December is due at 10 a.m. Eastern.
