According to Barclays, Gold prices fell by 2% to close at $1631.5/oz, its weakest level since 20 October amid broad risk reduction and the need for liquidity as equity markets eased and the dollar continued to strengthen against the euro to levels last seen in January.
“Prices came under pressure after the FOMC statement failed to hint at further quantitative easing despite acknowledging slowing global growth. In line with our economists’ expectations, the FOMC decided to keep policy unchanged at its December meeting. Our economists believe that the FOMC maintains an easing bias and while they do not foresee asset purchases as part of their baseline outlook, they do not fully rule them out,” Barclays added.
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