Gold prices eased further in Asia on Thursday on continued reaction
to the Federal Reserve announcement overnight that it was trimming its
monthly bond-buying program to $55 billion from $65 billion.
On
the Comex division of the New York Mercantile Exchange, gold futures
for April delivery traded at $1,328.20 a troy ounce, down 0.98%, after
hitting an overnight session low of $1,3330.90 and off a high of
$1,360.10.
The Fed earlier said it was leaving interest rates
unchanged and reduced the amount of bonds it buys in the open market
each month to $55 billion from $65 billion, both moves in line with
expectations.
The news sent gold falling, as the Fed's asset-purchasing program, which kicked off in 2012 at $85 billion a month, has supported the yellow metal by weakening the dollar.
Elsewhere, the Fed omitted previous language calling for rate hikes if the unemployment rate approaches a 6.5% threshold, a policy tool known as forward guidance.
Even though the economy is improving, a highly accommodative monetary policy stance remains appropriate, the U.S. central bank said.
Still, gold remained lower on sentiments that even though interest rates may remain low for time to come, stimulus tools such as bond purchases are on their way out.
Meanwhile, silver for May delivery was down 0.97% at US$20.625 a troy ounce, while copper futures for May delivery rose 0.27% at US$2.992 a pound.
The news sent gold falling, as the Fed's asset-purchasing program, which kicked off in 2012 at $85 billion a month, has supported the yellow metal by weakening the dollar.
Elsewhere, the Fed omitted previous language calling for rate hikes if the unemployment rate approaches a 6.5% threshold, a policy tool known as forward guidance.
Even though the economy is improving, a highly accommodative monetary policy stance remains appropriate, the U.S. central bank said.
Still, gold remained lower on sentiments that even though interest rates may remain low for time to come, stimulus tools such as bond purchases are on their way out.
Meanwhile, silver for May delivery was down 0.97% at US$20.625 a troy ounce, while copper futures for May delivery rose 0.27% at US$2.992 a pound.
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