Gold prices drop as Fed signals stimulus slowdown

Futures prices turned lower earlier Wednesday after Federal Reserve Chairman Ben Bernanke told reporters that the central bank’s purchases of government bonds may be scaled back as early as this year if economic activity improves in line with its forecasts.

The central bank is currently buying $85 billion a month of bonds in an effort to encourage economic growth. The central bank’s bond-buying program has helped bolster U.S. equity prices, and aggressive monetary easing in recent years has been credited for helping gold prices rally.

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