Gold futures dropped to a low $1,269.46 during the Asian trading hours, lowest since September 2010. The S&P GSCI gauge of 24 commodities dropped to a low 4.4%, while the MSCI Index of equities climbed 3.8%. The index from the Bank of America shows that the Treasuries dropped 2.4%.
The yellow metal traded higher with 0.79% at $1,295.50 per ounce as of 7:45 am GMT, at the same time, silver fell by 0.1% lower at $19.815 per ounce.
Gold fell as much as 7% on Thursday, marking the decrease of $88 to the closing reading of $1,286.20.
Other large speculators and hedge funds cut their position by 4.1% to 54,779 contracts in the week ended June 11, according to the U.S commodity futures trading commission data.
Wednesday’s statement from the Federal Reserve’s conclusion, disclosed that the Federal Open Market Committee (FOMC) will keep its monthly $85 billion asset purchases unchanged, however the Fed Chairman Mr. Bernanke hinted a possible cut in its bond-purchase program towards the end of the year and end around mid-2014 if the U.S economy should pickup.
The unemployment rate should shift between 7.2% and 7.3% by the end of the year before its falls between 6.5% to 6.8% by the end of 2014, according to the last forecast released. The Gross domestic product (GDP) is expected to rise between 2.3% and 2.6%.
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