Gold fell for a second day before the Federal Reserve meets to assess a pledge to keep borrowing costs low for a considerable time and provide guidance on the outlook for monetary policy. Silver, platinum and palladium declined.
Bullion for immediate delivery dropped as much as 0.7 percent to $1,213.52 an ounce and traded at $1,217.14 at 12:02 p.m. in Singapore, according to Bloomberg generic pricing. The metal climbed 2.5 percent last week, the most since the period to Oct. 10, as the dollar declined and global stocks tumbled amid a slump in energy prices.
The Fed meets Dec. 16-17 to debate the pace of raising borrowing costs after holding rates near zero since 2008 to boost growth. Paul Krugman, the economist and 2008 Nobel laureate, said at the weekend that policy makers are unlikely to raise interest rates in 2015 as they struggle to spur inflation amid sluggish global economic growth. Gold remains 1.3 percent higher this year after slumping 28 percent in 2013.
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.