The central bank will expand its program to replace short- term bonds with longer-term debt by $267 billion through the end of the year in a bid to reduce unemployment and protect expansion, policy makers said today in a statement. The Fed bought $2.3 trillion in assets through June 2011 in two rounds known as quantitative easing.
“The market is disappointed, and we are seeing some sell off,” Bart Melek, the Toronto-based head of commodity strategy at TD Securities Inc., said in a telephone interview. “The market had begun unwinding in the past few sessions since expectations were mixed, so I think the sell off will not be a very huge one.”
Gold futures for August delivery fell 0.5 percent to settle at $1,615.80 an ounce on the Comex in New York, the biggest slump since June 7.
Prices extended losses in after-hours electronic trading, falling 1 percent to $1,607 at 3:50 p.m. in New York.
Fed Chairman Ben S. Bernanke said access to credit remains a “major issue” without specifying additional stimulative measures during a press conference after the close of floor trading.
“If we don’t see continued improvement in the labor market, we’ll be prepared to take additional steps if appropriate,” Bernanke said at a news conference.
“The Fed leaving the doors open without actually going through them has disappointed the market,” said Michael Gayed, the chief investment strategist at New York-based Pension Partners LLC, which advises on more than $150 million in assets.
via Gold Slumps Most in Two Weeks After Fed Expands Operation Twist – Bloomberg.
Ha! Sold mine last week. What’s up with silver right now? Could go either way.