Gold Declines From 10-Week High on Bets Fed Will Reduce Stimulus

Gold futures fell from a 10-week high on speculation that the Federal Reserve will reduce U.S. monetary stimulus this week, trimming demand for the precious metal as a store of value.

The central bank in December cut monthly bond purchases by $10 billion to $75 billion as the economy gained. The Fed will reduce asset purchases by $10 billion at each meeting to end the program this year, according to the median of forecasts by economists this month in a Bloomberg survey. The officials begin a two-day policy meeting tomorrow. Gold futures for April delivery declined 0.1 percent to settle at $1,263.50 an ounce at 1:38 p.m. on the Comex in New York. Earlier, the price reached to $1,280.10, the highest for a most-active contract since Nov. 18. Trading was 43 percent above the average in the past 100 days for this time, data compiled by Bloomberg showed. Silver futures for March delivery gained 0.1 percent to $19.793 an ounce on the Comex. On the New York Mercantile Exchange, platinum futures for April delivery fell 0.5 percent to $1,421.10 an ounce. Palladium futures for March delivery declined 1.7 percent to $722.55 an ounce on the Nymex. The price dropped for the third straight session, the longest slump since Dec. 19. Copy Source: Bloomberg