Gold at $1199 after Positive Comments from Fed

Gold settled at its lowest level in nearly 4 weeks on Thursday after the Federal Reserve ended its bond-buying stimulus program with unexpectedly upbeat comments about the economy.

U.S. December gold futures ended $26.30, or 2.2 percent, lower at $1,198.60 an ounce, its lowest close since October 3.  Meanwhile, spot gold was down 1 percent at $1,199 an ounce and silver tumbled to its lowest price since March 2010 at $16.45.

The Fed statement on Wednesday, coupled with unexpectedly strong third-quarter U.S. economic growth data, sent the dollar to its highest since Oct. 6, while U.S. interest rate futures shifted to show better-than-even chances of a rate rise next September. Previously, they had indicated a rise in October.


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