Gold, silver fall in anticipation of Fed pullback

Staff Writer
Columbus CEO

Gold and silver prices are lower as traders anticipate that the Federal Reserve may be closer to reducing its economic stimulus than previously expected.

Gold futures fell $15.50, or 1.2 percent, to settle at $1,258 an ounce Wednesday. Silver lost 27.6 cents, or 1.4 percent, to $20.058 an ounce.

Minutes from the central bank's policy meeting last month showed that the Fed would likely begin reducing its bond purchases in the coming months if the job market continued to improve.

Policymakers also considered slowing down the purchases even if there wasn't clear evidence that the job market was improving.

The prospect of fewer bond purchases diminished the threat the program could trigger inflation and a weaker dollar, key drivers of higher gold prices.

Crop prices fell. Oil was flat.