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Gold prices drift lower after Fed trims support

April 30, 2014

Gold prices are heading lower after the Federal Reserve said it will continue to scale back its support for the economy.

Gold for June delivery slipped 40 cents to settle at $1,295.90 an ounce on Wednesday. Silver for July dropped 36 cents to $19.17 an ounce.

The Fed cut its monthly bond purchases by $10 billion to $45 billion, saying the steadily improving economy needs less help from the Fed.

Gold prices have slumped in recent months as expectations rise that the Fed will raise interest rates next year, weakening the appeal of gold and other precious metals as investments.

Prices for most other metals also drifted lower Wednesday. Copper for July dropped 5 cents to $3.03 a pound.

In other trading, wheat rose, while corn and soybeans fell.

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