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Gold fell for a fourth day in New York on speculation more stimulus by the Federal Reserve will be needed to boost demand for the metal as an alternative asset. Silver dropped the most in two weeks.
Bullion dropped to a one-week low yesterday after the Fed extended its program of replacing short-term bonds with longer- term debt by $267 billion through the end of 2012. Prices rose about 70 percent as the Fed bought $2.3 trillion of debt in two rounds of so-called quantitative easing that ended in June 2011.
“The final outcome of the Fed meeting is not what gold bulls were looking for,” said Saeed Amen, an analyst at Nomura International Plc in London.
Gold futures for August delivery fell 1.2 percent to $1,597.20 an ounce by 7:48 a.m. on the Comex in New York. Gold for immediate delivery dropped 0.7 percent to $1,596.47.
Gold has risen 2.1 percent this year, extending 11 years of gains, as investors sought to protect their wealth. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, were unchanged at 1,281.62 metric tons yesterday, the company’s website showed.
Fed officials see growth ranging from 1.9 percent to 2.4 percent this year, down from an April forecast of 2.4 percent to 2.9 percent, according to their so-called central tendency estimates. They expect joblessness of 7.5 percent to 8 percent in 2013, up from 7.3 percent to 7.7 percent.
Silver for July delivery fell 2 percent to $27.81 an ounce, the biggest decline on a closing basis since June 7. Platinum for July delivery dropped 0.7 percent to $1,456 an ounce and palladium for September delivery was down 0.3 percent at $617.55 an ounce.
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