Gold Futures Decline for Second Day on Stimulus Taper Concern
This article is for subscribers only.
Gold declined for the second straight day in New York amid concern that the Federal Reserve will continue lowering U.S. stimulus, reducing the demand for the metal as a store of value.
The Fed trimmed its monthly bond purchases to $75 billion from $85 billion in December, and will probably cut buying by $10 billion at each meeting to end the program this year, according to a Jan. 10 Bloomberg survey. The central bank next gathers Jan. 28-29. Gold fell 0.8 percent yesterday, the most since Dec. 30. Morgan Stanley today lowered its target for prices this year by 12 percent to $1,160 an ounce.