Gold extends losses after Fed disappoints

Gold fell on Friday, extending losses from the previous day when the U.S. Federal Reserve gave no hint of plans for an imminent stimulus to the economy, which disappointed investors and dampening the metal's appeal as a hedge against monetary easing.

A weaker euro against the dollar also weighed on dollar-priced precious metals, making them costlier for holders of other currencies.

The euro fell after a three-notch downgrade to Spain's credit rating and signs of economic weakness in Italy and Germany, leaving it vulnerable to further falls as concerns ratchet up about a deepening euro zone debt crisis.

Spot gold was at $1,577.30 an ounce by 9:41 a.m. EDT (1341 GMT), down almost 1 percent from $1,589.15 late in New York the previous day. Earlier it hit a session low of $1,561.44, its lowest in a week.

Read Full Article from CNBC.com

- Posted: 2012-06-08 12:11:21

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