efd-services (LIVE CHAT ) Gold falls 2 pct as dollar jumps after Fed statement Gold fell about 2 percent on Wednesday, its biggest one-day drop in three months, as the dollar rallied after the Federal Reserve dropped a set of guideposts it had been using to help the public anticipate when it would finally start bumping borrowing costs up from zero. In announcing its view on future rates after a two-day policy meeting, the Fed also pushed forward with plans to slowly wind down its stimulus but said it will likely need to keep rates low even after the economy regains its health given lasting scars from the financial crisis. Golds appeal as an inflation hedge is not as strong after the Feds moves. It was already down on the reduction in geopolitical risk, so the combination of the two is pretty powerful, said James Steel, chief precious metals analyst at HSBC. Earlier in the session, gold came under pressure after Russian President Vladimir Putin signed a treaty on Tuesday making Crimea part of Russia again but said he did not plan to seize any other regions of Ukraine.
Posted on: Thu, 20 Mar 2014 05:14:28 +0000
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