THE price of gold is slumping below $US1,200 an ounce, the lowest in more than three years, after the US Federal Reserve pulled back on its stimulus program. Gold plunged $US41.40, or 3.4 per cent, to $US1,193.60 an ounce on Thursday.
It hadn't closed below $US1,200 an ounce since August 2010.
Gold went as high as $US1,900 an ounce in August 2011 as traders feared that the Fed's efforts to support the US economy with easy-money policies would cause inflation.
That never happened.
The latest plunge came a day after the Fed said it would reduce its bond purchases next month, further dissipating concerns about inflation.
The price of silver also fell sharply. The March contract fell 87.3 US cents, or 4.4 per cent, to $US 19.186 an ounce. Increase Text SizeDecrease Text SizePrintEmail Share Add to DiggAdd to del.icio.usAdd to FacebookAdd to KwoffAdd to MyspaceAdd to NewsvineWhat are these?Back to top of page
NCM Price at posting:
$7.32 Sentiment: Sell Disclosure: Not Held
