Gold posted the biggest loss in almost three weeks and silver had the largest slump in more than a month as the Federal Reserve fueled speculation that it will trim U.S. monetary stimulus sooner than anticipated.
The economy shows signs of “underlying strength,” Fed policy makers said yesterday. The statement pointed to the possibility of reduced bond purchases as soon as December, Citigroup Inc. and Barclays Plc said. The dollar headed for the longest rally in eight weeks against a basket of 10 currencies.
“The tapering has to come at some point and will be sooner than later,” David Lee, a vice president at Heraeus Precious Metals Management in New York, said in a telephone interview. “The dollar’s strength is working against gold.”
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.