Gold Rises On Physical Buying As South Sudan Violence Escalates

on the Comex in New York. Prices have tumbled 28 percent this year, set for the worst annual drop since 1981, as equities rallied and the Fed said it will cut monthly asset purchases to $75 billion from $85 billion. Silver futures for March delivery added 0.4 percent to $19.484 an ounce on the Comex. On the New York Mercantile Exchange , palladium futures for March delivery slipped less than 0.1 percent to $695.45 an ounce.

Gold stays near two-week low after Fed reduces bond buying


6 predicted that the Fed would start paring stimulus this month. The taper was generally priced in and it was the gentlest taper that they could expect, said Steven Dooley, head of research at Forex Capital Trading Pty in Melbourne. Thats caused a much muted reaction in the gold market. The Feds purchases will be divided between $40 billion in Treasuries and $35 billion in mortgage bonds starting in January, according to Bernanke. Gold rose 70 percent from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system. Gold may be susceptible to some near-term price correction should a short-covering rally occur, James Steel, an analyst at HSBC Securities (USA) Inc. in New York, wrote in a note.


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