Jalatama Artha Berjangka News

Gold fell from a three-month high as minutes from the Federal Reserve’s last meeting indicated stimulus cuts would likely continue, crimping demand for the precious metal as an alternative investment.

Several policy makers said that in “the absence of an appreciable change in the economic outlook, there should be a clear presumption in favor of continuing to reduce the pace” of bond purchases at each meeting, according to minutes released today. Some officials raised concern that inflation is too low. Gold climbed 9.8 percent this year as signs that U.S. growth is faltering fueled bets that the pace of stimulus cuts may slow.

Gold futures for April delivery declined 0.8 percent to $1,316.10 an ounce in electronic trading at 2:37 p.m. on the Comex in New York. Prices settled at $1,320.40 at the end of regular trading before the minutes were released,

The metal reached $1,332.40 yesterday, the highest since Oct. 31. Last month, the central bank trimmed monthly bond purchases by $10 billion for a second straight month to $65 billion. Fed Chairman Janet Yellen said Feb. 11 that reductions aren’t on a “pre-set course.”

Bullion surged more than 500 percent in 12 straight years of gains through 2012 as the dollar weakened. The rally accelerated from December 2008 to June 2011 as the Fed expanded its balance sheet through debt purchases and held borrowing costs at a record low in a bid to revive growth amid a U.S. recession. Prices reached a record $1,923.70 in September 2011.

(Source: Bloomberg)