Gold futures log 1st loss in three sessions

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Gold futures log 1st loss in three sessions

(Xinhua) 08:04, November 19, 2013

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CHICAGO, Nov. 18 -- Gold futures on the COMEX division of the New York Mercantile Exchange ended lower on Monday, as U.S. Federal Reserve officials pointed to the likelihood that the central bank will soon begin to taper its bond-buying program.

The most active gold contract for December delivery fell 15.1 U. S. dollars, or 1.17 percent, to settle at 1,272.3 dollars per ounce. Gold futures fell the most in a week as a global equity rally cut demand for precious metals as alternative investment.

Market analysts say, investors are concerned about the Fed's timetable for its tapering, as Charles Plosser, president of the Philadelphia Fed, said on Monday that the Fed should bring to an end its 85 billion dollars a month asset-purchase program.

Meanwhile, William Dudley, president of the Federal Reserve Bank of New York, said he was becoming "more hopeful" about the U. S. economy and that anemic growth could give way to stronger growth over the next two years.

A pullback in quantitative easing could provide support for the U.S. dollar, which in turn may pressure dollar-denominated gold prices. Gold is poised for the first annual decline since the year 2000, some investors lost faith in the metal as a store of value amid the equity rally and low U.S. inflation, analysts say.

Silver for December delivery fell 37 cents, or 1.79 percent, to close at 20.357 dollars per ounce.

（Editor：YaoChun、Liang Jun）