Gold, Silver Fall in Anticipation of Fed Pullback

NEW YORK (AP) -

Gold and silver prices fell Wednesday, as traders anticipated that the Federal Reserve may be closer to reducing its economic stimulus than previously expected.

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

Gold for December delivery fell $15.50, or 1.2 percent, to settle at $1,258 an ounce Wednesday. December 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.

December copper inched up less than a penny to $3.1595 a pound.

January platinum fell $20.30, or 1.4 percent, to $1,399.60 an ounce. December palladium fell $8.05, or 1.1 percent, to $713.85 an ounce.

December corn fell three-quarters of a cent to $4.17 a bushel. December wheat fell 3 cents to $6.4725 a bushel, and January soybeans fell 2.5 cents to $12.7375 a bushel.