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Fed uncertainty leads to sharpest gold price dip in 2 weeks

  • The precious metal, gold, posted its sharpest weekly drop in more than two months, falling 2.5 percent after information about the US Federal Reserve emerged, revealing it had advised US central bankers could start scaling back their monetary stimulus packages.

    Weaker demand for gold from Asia, a traditional area of heavy gold consumption, and continued outflow in gold exchange-traded funds has put some stress on bullion prices. The IMF also revealed that the German Bundesbank had sold 3.421 tonnes of gold for federal coin minting.

    According to Reuters, US gold futures for December delivery were up 50 cents at USD 1,244.10 an ounce, with trading volume about 10 percent above its 30-day average. Analysts predict the next price level to watch out for is USD 1,200.

     

    Tagged as: Gold prices, US Federal Reserve, gold trading, gold futures, business news