Gold at 2½-year low on Fed move

20-Jun (Financial Times) — Gold has tumbled more than 4 per cent to a two and a half year low after the US Federal Reserve signalled a scaling back of its monetary stimulus programme.

The change of course for the Fed prompted heavy selling, and the yellow metal on Thursday fell as low as $1,287.60 a troy ounce, its weakest since September 2010. It later pared its losses and was trading at $1,306.20.

Prospects of a stronger US economy, higher bond yields and a stronger dollar spurred analysts to take a scalpel to their gold price forecasts.
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