Skip to content
Subscriber Only
Business
Economics

Gold Drops as U.S. Growth Signs Fuel Concern Fed to Cut Stimulus

Gold fell for the third time in four days as signs of a rebounding U.S. economy revived concern that the Federal Reserve will scale back monetary stimulus, eroding the appeal of the precious metal as a store of value.

Orders for durable goods increased more than forecast in April by 3.3 percent, the Commerce Department said today. Economists in a Bloomberg survey expected a 1.5 percent increase. Fed Chairman Ben S. Bernanke said May 22 that the central bank may slow the $85 billion a month of Treasury and mortgage debt purchases if the economy shows sustained signs of improvement. Gold has declined 17 percent this year.