Gold Drops in the Wake of Fed Tapering Decision

by Christopher Freeburn | January 30, 2014 4:32 pm

Gold Silver GLD IAU SLV[1]Gold fell sharply in Thursday trading, a day after the Federal Reserve said it would further reduce its monthly stimulus. While the metal faded, U.S. stock markets and the U.S. dollar posted gains during the day.

On Wednesday afternoon, the Fed announced plans to reduce its monthly bond-buying by another $10 billion starting in February, following a similar cut last month. Gold had settled higher on Wednesday prior to the Fed’s announcement.

Gold futures for April delivery sank 1.6% to $1,242.50 per ounce on Thursday, according to CME Group[2]. Gold traded as high as $1,267.80 and as low as $1,237.50. Bullion closed in London at $1,246, according to BullionVault[3].

Silver futures for March delivery slid 2.2%, to $19.13 per ounce. Thursday’s high for silver was $19.73, while the low was $18.97.

Metal funds declined on Thursday.

Mining ETFs retreated during the day.

Gold stocks sank on Thursday.

Silver mining shares pulled back during the day.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.

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