Gold Falls Before Fed Meets as Investors Weigh Stimulus Outlook

by Debarati Roy & Nicholas Larkin,  |  published on June 18, 2013

Gold declined in New York before the Federal Reserve starts a two-day meeting as investors weighed when the central bank will taper asset purchases.

The Federal Open Market Committee begins its two-day policy meeting tomorrow. Fed Chairman Ben S. Bernanke said last month the central bank, which is buying $85 billion of Treasuries and mortgage securities a month to spur the economy, could scale back stimulus efforts if the employment outlook shows sustainable improvement. Holdings in exchange-traded products backed by gold fell to the lowest since March 2011.

“The markets will be looking for any further clues on the timing of tapering,” Steve Scacalossi, a New York-based vice president at TD Securities Inc., said in a report. “The holdings in ETF continue to fall as investors contemplate better returns in other markets.”

Gold futures for August delivery lost 0.3 percent to settle at $1,383.10 an ounce at 1:41 p.m. on the Comex in New York. Prices have tumbled 17 percent this year as some investors lost faith in the precious metal as a store of value and amid concern that the Fed will slow the pace of stimulus.

No comments yet - you can be the first!

Comments are closed.

Do you Love your country but hate your government?

Join your fellow Libertarians who seek a world of liberty; a world in which all individuals are sovereign over their own lives and no one is forced to sacrifice his or her values for the benefit of others. Join over 500,000 Americans who get their daily dose of minimal government and maximum freedom with The New Liberty Movement.

We know how important your privacy is and your information is SAFE with us. We’ll never sell
your email address and you can unsubscribe at any time directly from your inbox.
View our full privacy policy.