Gold slips under $1,377 in wake of Bernanke, Fed’s minutes
Gold dropped Tuesday about 1% to $1,376.70 an ounce by 7:47 a.m. in New York, driven by mounting speculation the U.S. Federal Reserve may soon end its bullion-friendly bond buying program as a protection of wealth.
Yesterday, gold prices fell to $1,336.30, the lowest since April 18, before recovering to close nearer the session high.
US Federal Reserve Bank Chairman, Ben Bernanke, is set to discuss the economic outlook in congressional testimony and the central bank will publish minutes of its latest meeting on Wednesday.
Traders and investors will follow each and every of Bernanke’s remarks and the FOMC minutes, looking for clues on the US central bank’s potential course of monetary policy in the coming weeks and months.
There is a growing belief among investors that the Fed is planning to wind down its quantitative easing program (QE3) sooner rather than later. However, there is no clear consensus.