Gold Slumps as QE3 Hopes Fade

A relatively more upbeat Fed statement has evaporated much hope on QE3 and this has sent gold prices much lower. The benchmark Comex contract for the yellow metal slumped to 1634.7, the lowest level since January, before ending the day at 1642.9, down -3.03%. As gold's rally in the beginning of the year was mainly driven by speculations of further quantitative easing from the Fed, the outlook would turn more bearish if the central bank sends more signals that further stimulus is less likely. Oil prices also weakened with the front-month contract for WTI crude slipped to a 5-day low of 105.12.

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Gold Slumps as QE3 Hopes Fade