Gold prices came under pressure again Thursday, retreating after the Federal Reserve pulled the plug on its stimulus program and showed confidence that the U.S. economic recovery is on track.
At last check, gold for December delivery GCZ4, -1.71% was down another $20.50, or 1.7%, to $1,204.20 an ounce. December silver SIZ4, -2.43% dropped 44 cents, or 2.5%, to $16.83 an ounce.
A day earlier, the anticipation of the Fed’s farewell to QE3 did little to inspire gold buying — or equity buying, for that matter. Though damage was minimal in both cases.
Before Thursday’s retreat, HSBC analyst Patrick Chidley said that the selloff in gold prices has been overdone and that a rebound in demand is already underway.
“The most recent economic news points to the need for more monetary stimulus, which could be gold-positive, at least in the long run,” he said.
The next economic checkup will be the GDP number Thursday morning. Analysts are looking for a 2.8% annualized improvement. Initial weekly unemployment claims hit at the same time.
Elsewhere in metals trading, January platinum PLF5, -1.21% lost $14.20, or 1.8%, to $1,253.70 an ounce, giving back all of the prior session’s gains and then some. December palladium PAZ4, -1.45% was hit even harder, down $14.20, or 1.8%, to $786.50 an ounce.
High-grade copper for December delivery HGZ4, -0.92% gave up 4 cents to $3.07 a pound.