News Column

Gold falls after Fed gives view of US outlook

May 1, 2014

Gold fell on Thursday, a day after the Federal Reserve announced a further cut to its extraordinary stimulus measures and reiterated its confidence in the US economic outlook, despite a weak reading of first-quarter growth.

Outflows resumed from bullion-backed exchange-traded funds, suggesting investor confidence in the metal remains soft.

Optimism over the health of the US economy suggests the Fed will keep paring back its monetary easing programme, relieving downward pressure on long-term interest rates and taking the heat out of inflation fears.

Spot gold was down 0.7 per cent at $1,283.20 an ounce at 0943 GMT, while US gold futures for June delivery were down $12.40 an ounce at $1,283.50.

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Source: Khaleej Times (United Arab Emirates)

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