LONDON: Gold declined toward a 2 1/2-year low in New York as prospects that theUS Federal Reserve will reduce monetary stimulus curbed demand for a protection of wealth. Silver also declined.
Gold for August delivery fell 0.7% to $1,283.40 an ounce by 7:57 am on the Comex in New York on Monday. Prices slipped 6.9% last week.
Futures trading volume was 5% above the average in the past 100 days for this time of day, according to data compiled by Bloomberg. Gold for immediate delivery in London dropped 1% to $1,283.91.
Gold fell to $1,268.70 an ounce on June 21, the lowest since September 2010, after Fed Chairman Ben S Bernanke said the central bank, which buys $85 billion of Treasury and mortgage debt a month, may trim stimulus this year and end the program in 2014 should the economy continue to improve. Goldman Sachs lowered its year-end forecasts through 2014.
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