Gold down to 1218 after Fed Decision

Gold fell about 1 percent in choppy trade on Wednesday, after the U.S. Federal Reserve lowered its inflation forecast and signalled better prospects for the economy as it announced plans to trim its bond-buying stimulus.

In what amounts to the beginning of the end of its unprecedented support for the U.S. economy, the central bank said it would reduce its monthly asset purchases by $10 billion, bringing them down to $75 billion.

Bullion initially rose after the U.S. central bank said it “likely will be appropriate” to keep overnight rates near zero “well past the time” that the jobless rate falls below 6.5 percent, especially if inflation expectations remain below target.

Reuters

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