Gold Sinks $37 But Closes Week Higher
Both precious metals have retraced a large portion of the gains seen after the Federal Reserve’s latest policy announcement, but they still managed to close the week modestly higher.
The latest round of selling pressure came as Federal Reserve Bank of St. Louis President James Bullard told Bloomberg that the central bank could dial down its bond purchases in October. He also noted that it was a “borderline decision” to keep quantitative easing unchanged at the September policy meeting.
Monthly bond purchases, known as quantitative easing, will continue as normal, with $40 billion in agency mortgage-backed securities and $45 billion in long-term Treasuries. Fourteen of 17 Fed officials don’t expect to see the central bank start to raise interest rates until 2015 or 2016.