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Gold Falls for Second Session on Stimulus Speculation

Gold fell for the second straight session after a Federal Reserve official said policy makers may start reducing U.S. fiscal stimulus as early as next month.

The central bank’s decision last week to refrain from paring its $85 billion in monthly bond buying was a “borderline” call, and tapering may start in October, Fed Bank of St. Louis President James Bullard said on Sept. 20. Gold dropped 2.7 percent on that day, the most since July 5. Prices surged 70 percent from the end of December 2008 to June 2011 as the Fed bought debt and stoked inflation concerns.