|
Jun 21, 2012, 08.28 AM IST
Gold slipped for a third straight day on Thursday after the U.S. Federal Reserve stopped short of launching another round of quantitative easing to stimulate the economy, a move that could have boosted bullion's appeal in times of uncertainty.
Investors had expected the Fed to extend its bond-buying program dubbed "Operation Twist", but some were disappointed after the central bank did not adopt more aggressive measures to boost growth in the face of slower U.S. hiring and a festering European debt crisis. FUNDAMENTALS * Spot gold fell $3.49 an ounce to $1,601.89 by 0030 GMT, having slipped to $1,520.29 an ounce on Wednesday, its weakest since June 12 following the Fed's announcement. * U.S. gold for August delivery dropped dropped $12.80 an ounce to $1,603.00. * The Fed expanded its "Operation Twist" by $267 billion, meaning it will sell that amount of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The programme, which was due to expire this month, will now run through the end of the year. * But Wall Street's top bond firms still see a 50 percent chance that the Fed will begin a third round of quantitative easing to boost the U.S. economy even after it extended its current stimulus program on Wednesday. MARKET NEWS * Japan's Nikkei share average rose on Thursday as the yen weakened slightly after the U.S. Federal Reserve stopped short of a third round of quantitative easing and satisfied itself with just a dash of monetary stimulus. * The dollar held off a one-month low against a basket of major currencies on Thursday, no worse for wear even after the Federal Reserve delivered another dash of monetary stimulus and said it was ready to do more if necessary.
|
 From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'  The latest earning numbers FIRST on CNBC-TV18
News Videos
|
