Gold slipped on Thursday despite the U.S. Federal Reserve vowing to support the economy through stimulus measures, with investors taking profits from a recent run-up in prices.
The metal had risen about 8 percent since hitting a three-month low on Oct. 15 in anticipation of the Fed’s move, leading to a price correction on Wednesday after a statement from the bank came in line with expectations.
Spot gold pared some losses after falling as much
0.3 percent to trade down 0.12 percent at $1,340.59 an ounce by 0022 GMT. Gold is heading for a 1-percent monthly gain.
The Fed on Wednesday sounded a bit less optimistic about economic growth as it announced plans to keep buying $85 billion in bonds per month. The central bank noted that the recovery in the housing market had lost some steam and suggested some frustration at how slowly the labour market was healing.
Elliott Management said the Fed’s easy money policies have distorted the economy and created big risks for markets and investors alike, prompting the hedge fund firm to add to long gold options to protect against inflation.
Barrick Gold, which is attempting to reduce its debt load, is considering a wide range of options from a strategic equity investment to further streaming deals that yield upfront cash, according to sources.
Hedge funds and money managers cut their bullish bets in
U.S. gold, silver and copper futures and options in the week ended Oct. 15, a delayed report by the U.S. Commodity Futures Trading Commission showed on Wednesday.
Precious metals prices 0022 GMT
|Metal||Last||Change||Pct chg||YTD pct chg||Volume|
|COMEX GOLD DEC3||1340.9||-8.4||-0.62||-19.98||2488|
|COMEX SILVER DE C3||22.58||-0.4||-1.75||-25.49||666|
COMEX gold and silver contracts show the most active months