Gold Drops Sharply Below $1210 after Optimistic Fed

Gold was languishing near a three-week low on Thursday after the U.S. Federal Reserve ended its bond-buying stimulus program and expressed confidence in the economic recovery, dimming bullion’s safe-haven appeal.

Spot gold was little changed at $1,212.60 an ounce by 0031 GMT. In the previous session, gold fell to $1,208.26 – its lowest since Oct. 8, before closing down 1.3 percent.  U.S. gold futures slid about 1 percent to $1,212.80 on Thursday, tracking losses in spot gold.

The Fed on Wednesday ended its monthly bond purchase program and dropped a characterization of U.S. labor market slack as “significant” in a show of confidence in the economy’s prospects.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.