Gold Slips on Speculation Fed Will Cut Stimulus

Gold prices are sinking as traders weigh the possibility that the Federal Reserve will start paring back its support for the economy in the coming months.

Gold for June delivery fell $10.20 to settle at $1,367.40 an ounce, a drop of 0.7 percent.

Prices for the precious metal wavered earlier in the day. In testimony before Congress, Federal Reserve Chairman Ben Bernanke said it was too soon to taper its bond-buying program. The news helped send gold prices up to $1,411 in morning trading.

Bernanke later explained that the Fed would still consider slowing the pace of its bond purchases in the coming months if the economy improved enough. Gold prices soon slumped.

Other metals rose slightly Wednesday.

In other trading, corn and soybeans dropped slightly, while wheat inched up.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2447740, ~/Articles/ArticleHandler.aspx, 7/31/2014 11:52:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement