Gold Drops Sharply to $1244 after Fed Taper and Equities Rally

Gold prices settled nearly 2 percent lower on Thursday as a pullback in the Federal Reserve’s stimulus program and an equities rally on robust U.S. growth data prompted bullion investors to take profits.

Signs of stabilization after a sharp emerging market selloff, which had boosted gold prices earlier this week, also hit gold’s safe-haven appeal.

The U.S. dollar strengthened and the S&P 500 stock market index rose more than 1 percent after data showed that robust household spending and rising exports sparked a 3.2 percent annual-rate growth in the U.S. economy in the fourth quarter.

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.