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Gold Extends Drop, Other Precious Metals Fare Better

September 19, 2014 at 0:42 by Vladimir Vyun

Gold dropped yesterday after traders digested the policy announcement from the Federal Reserve, and  the metal extended its drop today. Surprisingly, other precious metals fared better, demonstrating small gains.

The Fed trimmed its quantitative easing program on Wednesday and signaled that it will likely scrap QE completely next month. While the tone of the statement was not entirely hawkish, traders were still betting on an eventual interest rate hike, driving the dollar up and gold, which often trades inversely to the US currency, down.

The US central bank suggested that it may start monetary tightening earlier in case of significant improvements in the economy. Yesterday’s reports from the United States were mixed, weakening the greenback to a degree, but this did not help the bullion.

December futures for gold lost 0.11 percent to $1,225.60 per troy ounce as of 00:35 GMT on COMEX today. Contract for silver was little changed at $18.52 per ounce. Spot price for platinum advanced 0.07 percent to $1,347.50 per ounce, and price for palladium gained 0.25 percent to $830.98 per ounce.

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