Gold declines as US Federal Reserve refrains from specific easing measures

LONDON: Gold fell for the third day after Federal Reserve Chairman Ben S Bernanke provided no specific plans for debt purchases while saying the central bank is prepared to act if labor markets don't improve.

Gold for immediate delivery fell 0.3 per cent to USD 1,578.30 an ounce. Silver for immediate delivery shed 0.8 per cent to USD 27.10 an ounce.

Bernanke, set to appear before a House Financial Services Committee today, told the Senate Banking Committee yesterday that policy makers are studying options for further easing. Easing tools include further purchases of Treasuries and mortgage-backed securities, and altering the Fed's language on the outlook for interest rates, Bernanke said yesterday.