Gold Futures Decline to Three-Week Low on Stimulus Bets
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Gold futures fell to a three-week low on speculation that the Federal Reserve may signal a reduction of U.S. economic stimulus. Palladium dropped to the cheapest in more than a month as European car sales plunged.
Fed policy makers began a two-day meeting today. The central bank currently buys $85 billion a month of Treasuries and mortgage debt. Chairman Ben S. Bernanke said last month the pace of purchases may be scaled back if the employment outlook shows sustainable improvement. Physical gold demand in North America and Europe has dropped 80 percent from April, Kitco Metals Inc. said in a report.