Gold and silver prices fell slightly as the Federal Open Market Committee decided to pause, as widely expected, in raising interest rates.

December gold settled down $2.20 at $657.30 an ounce.

September silver settled 0.5 cent lower at $12.26 an ounce.

Many precious metals analysts did not expect more than a short-term and possibly subdued reaction from gold once the Fed decision was made public, said John Nadler, rate-tightening cycle decision analyst at Kitco Bullion Dealers.

He added that factors such as the conflict in between Israel and Hezbollah, the "developing civil war in Iraq, the absolute intractability of Iran, and the prospects of $4 per gallon gasoline being just around the corner are certainly posing more of a challenge to asset allocators than what may well be the last in a series of interest rate hikes _ that is, if it takes place at all."

October platinum settled $10.90 lower at $1,256 an ounce.

September palladium settling $3.80 lower at $323.75 an ounce.

September copper settled down 0.85 cent at $3.6020 per pound.