Gold and silver prices are falling as the dollar rises and traders anticipate that the Federal Reserve may reduce its economic stimulus sooner than some had expected.

Gold and silver prices are falling as the dollar rises and traders anticipate that the Federal Reserve may reduce its economic stimulus sooner than some had expected.

Gold for December delivery fell $25.60, or 1.9 percent, to $1,323.70 an ounce. Silver fell even more. The actively traded December contract fell $1.116, or 4.9 percent, to $21.867.

The Fed, in a policy statement released Wednesday, signaled that it thinks the U.S. economy is improving. That led traders to think it may curtail its $85 billion in monthly bond purchases sooner than expected.

That would have the effect of raising interest rates and increasing the value of the dollar two factors that weigh on gold prices.

December crude fell 39 cents to $96.38 a barrel in New York.

Crop futures fell.