Gold headed for the first consecutive monthly loss in 2014 after erasing gains for the year as the Federal Reserve ended its asset-purchase program amid signs of an improving U.S. economy. Silver dropped to the lowest since February 2010.
Bullion for immediate delivery traded at $1,198.94 an ounce at 11:36 a.m. in Singapore from $1,198.85 yesterday, according to Bloomberg generic pricing. The metal yesterday sank to $1,196.07, the lowest since Oct. 6, as U.S. gross domestic product beat estimates in the third quarter and China probed a surge in precious-metals exports. Assets in the largest exchange-traded product dropped to a six-year low.
Gold is 0.8 percent lower in October after losing 6.2 percent last month, and the metal yesterday erased the year’s advance as the Bloomberg Dollar Spot Index rose to a three-week high. Fed officials this week cited an improving job market in deciding to end bond-buying, while maintaining a commitment to keep interest rates low for a considerable time. The central bank has held its key rate at zero to 0.25 percent since 2008.
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