Gold declined as the
Federal Reserve said it sees a muted inflation risk from continued
stimulus, lowering demand for the precious metal as a hedge against
rising consumer costs.
Gold for immediate
delivery fell 0.3 percent to $1,290.68 an ounce at 2:32 p.m. in New
York, according to Bloomberg generic pricing.
On the Comex in New
York, gold futures for June delivery closed 0.5 percent lower at
$1,288.10 an ounce. The contract settled before the Fed statement was
released.
The Fed pared its
monthly asset buying to $45 billion in April, its fourth straight $10
billion cut, and said further reductions in measured steps are likely.
Bullion climbed 70
percent from December 2008 to June 2011 as the central bank bought debt
and held borrowing costs near zero percent.
Copy Source: Bloomberg
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