Gold fell below $1,200 an ounce for the first time in almost two years Thursday, as traders anticipated an eventual end to the Federal Reserve’s economic stimulus program.
Gold for August delivery lost $18.20, or 1.5 percent, to settle at $1,211.60 an ounce. It went as low as $1,196 an ounce, the first time it traded below $1,200 since August 2010.
The price of gold has been falling sharply since last week, when the Fed said it could wind down its $85 billion in monthly bond purchases by the middle of next year, as long as the economy continues to improve. Gold traded at $1,350 an ounce before the Fed made its announcement last Wednesday.
Other metals were mixed, after a broad sell-off the day before.
Silver for July delivery fell 5.4 cents, or 0.3 percent, to $18.533 an ounce.
July platinum rose $21.50, or 1.6 percent, to $1,325.20 an ounce, and September palladium rose $17.45, or 2.8 percent, to $650.70 an ounce. July copper rose 1.15 cents, or 0.4 percent, to $3.0525 a pound.
Crop prices were lower. The actively traded contract for wheat delivered in September fell 3.25 cents to $6.7375 a bushel. Corn for December delivery fell 5.5 cents to $5.3850 a bushel. Soybeans for November delivery edged down 0.75 cents to $12.7525 a bushel.