This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold Falls Sharply, Closes Below $1,600 An Ounce

By The Associated Press

Gold prices fell sharply Wednesday following the latest positive signs for the U.S. economy and signs of dissent at the Federal Reserve about continuing its bond purchases.

Gold for April delivery dropped $26.20, or 1.6 percent, to $1,578 an ounce, its first close below $1,600 an ounce since August.

News that the pace of home construction last month was the third-highest since 2008 was the latest indication that the U.S. housing market is recovering. That has helped diminish the appeal of gold as a defensive investment.

Also Wednesday the Federal Reserve released minutes of its latest policy meeting revealing that some policymakers are doubtful about continuing the Fed's bond purchases. They said the program could cause inflation, unsettle financial markets or cause the Fed to absorb losses once it begins selling its investments. The Fed has said it plans to keep buying $85 billion in bonds each month until the job market improves.

If the Fed ends or curtails its program earlier than anticipated, it would likely result in higher U.S. interest rates and a stronger dollar. One of the reasons investors buy gold is to have an alternative to holding dollars. As a result, gold often falls when traders think the dollar will strengthen, and vice versa.

Other metals prices also fell. Silver dropped 2.7 percent. The March contract gave up 80 cents to end at $28.622. April platinum fell $50.40, or 3 percent, to $1,647.10 and March palladium fell $27.75, or 3.6 percent, to $736.40.

Copper fell 4.15 cents to $3.6080 a pound.

In agricultural futures, March wheat rose 6.25 cents to $7.385 a bushel, March corn rose 5.25 cents to $7.005 a bushel and soybeans fell 12.50 cents to $14.8275 a bushel.

Most energy futures were lower.

April crude lost $1.88, or 2 percent, to finish at $95.22 a barrel on the New York Mercantile Exchange. The March contract, which expires Wednesday, fell $2.20 to end at $94.46 per barrel.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs