Gold Futures Drop From Three-Month High on Fed Tapering Concern

Gold fell from a three-month high as minutes from the Federal Reserve’s last meeting indicated stimulus cuts would likely continue, crimping demand for the precious metal as an alternative investment.

Several policy makers said that in “the absence of an appreciable change in the economic outlook, there should be a clear presumption in favor of continuing to reduce the pace” of bond purchases at each meeting, according to minutes released today. Some officials raised concern that inflation is too low. Gold climbed 9.8 percent this year as signs that U.S. growth is faltering fueled bets that the pace of stimulus cuts may slow.