Gold declines before Fed meeting

LONDON: Gold fell as the Federal Reserve meets today and may decide on the timeline for reducing stimulus.


Gold dropped by 0.2 per cent to 1,238.33 dollar an ounce silver by 0.2 per cent to 19.97 dollar an ounce.

Economists predicted that the Fed's Federal Open Market Committee will start paring stimulus when it concludes a two-day policy meeting tomorrow.

Gains in manufacturing, technology and housing fueled "modest to moderate" economic growth from early October through mid-November, the central bank said in its Beige Book survey.

Gold tumbled 26 per cent this year, heading for the first annual loss since 2000, amid speculation the Fed will curb its 85 billion dollar in monthly bond purchases.

Prices rose 70 per cent from December 2008 to June 2011 as the Fed pumped more than 2 trillion dollar into the financial system.