(Bloomberg) – Gold turned down for the second straight day in New York in the middle of anxiety that the government book will extend 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 gathering to end the program this year, according to a Jan. 10 Bloomberg survey. The centered bank next accumulates Jan. 28-29. Gold dropped 0.8% yesterday, the most since Dec. 30. Morgan Stanley today let down its goal for charges this year by 12% to $1,160 an ounce.
A dealer at FuturePath Trading LLC in Chicago, said in a phone interview “The market will trade sideways to lower ahead of the Fed meeting,” open Lesh, and also added “The overall tendency continues bearish.”
Gold futures for February consignment lost 0.3% to resolve at $1,238.60 on the Comex at 1:44 p.m. in New York. Prices slumped 28% last year, the most since 1981. Some investors lost belief in the metal as a shop of value in the middle of a rally in equities and reduced inflation.