Gold Drops Below $1207 after Fed Optimism

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

The strength of the dollar, which hit a 3-1/2-week high against a basket of major currencies after the Fed statement, also hurt bullion.

Ending its monthly bond purchases, the Fed dropped a characterisation of U.S. labour market slack as “significant” in a show of confidence in the economy’s prospects.


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.