Gold prices slid Thursday to it's the lowest level since June after the U.S. Federal Reserve decided to scale-back its massive stimulus which had helped boost gold's prices to record highs in recent years. The Fed said on Wednesday that the U.S. economy was finally strong enough for it to start scaling back its massive bond-buying scheme, winding down the era of easy money that saw gold rally to $1,920.30 announce in 2011. That move came despite the Fed blunting its taper with a continued dovish message on interest rates - that tapering was not tightening. - Spot gold was down 1.1 percent at $1,205.85 an ounce at 12:21 GMT , having earlier touched a low of $1,200.40 , the lowest since June 28 . Investors snapped up gold after the Fed`s stimulus program was first announced, as the scheme kept interest rates at record lows, cutting the opportunity cost of holding non-yielding bullion, while boosting its appeal as an inflation hedge. Expectations that the program would be unwound have knocked gold more than 25 percent lower this year, its biggest price drop in more than 30 years, with its confirmation yesterday pushing prices back towards June`s three-year low at $1,180.71 . Investors are continuing to sell out of gold-backed exchange-traded funds, which have seen outflows of some 800 tonnes this year. The largest gold ETF, SPDR Gold Shares, said its holdings fell another 4.2 tonnes on Wednesday. Among other precious metals, silver was down 2.2 percent at $19.28 an ounce, while spot platinum was down 0.5 percent at $1,324.25 an ounce. Only palladium survived the trend to hold steady at $695.25 an ounce, after five straight days of losses. Crude Brent crude oil futures were steady around $109 a barrel Thursday as markets were still focused on U.S. crude stock inventories, shrugging off a move by the U.S. Federal Reserve to reduce its asset purchases program. -Brent crude was flat above $109 barrel by 0922 GMT , after ending $1.19 higher on Wednesday. - U.S. oil was flat under $98 , after ending 58 cents up. Oil prices faced some head winds early in the session after the dollar rallied hard on the Federal Reserve`s decision to reduce its bond buying, but this was the full extent of the impact.
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