The price of gold was losing value on Thursday in as the U.S. dollar strengthened, according to Reuters.
Though the policy making arm of the U.S. Federal Reserve on Wednesday said it would prolong stimulus program Operation Twist beyond this month, some investors were disappointed that no third round of quantitative easing was planned.
Currently we're seeing a bit of follow-through from disappointed investors but believe we should be finding support pretty soon, vice president Ole Hansen with Saxo Bank told Reuters. Commodities, especially energy, are not having a good time, with the GSCI (index) approaching bear market territory. This is pulling the whole sector lower at the moment as redemption and general nervousness about the near-term prospect is causing some selling, but gold and agriculture stand out, I would say.
At 11:28 a.m. on Thursday, gold futures fell 2.53 percent, a $40.90 loss to $1,574.90 per troy ounce.
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MarketWatch reports the silver and copper futures tracked the yellowish metal's downward drive as the world's reserve currency applied pressure on bullion. The dollar index, which measures the value of the greenback against six competing currencies, strengthened from Wednesday to Thursday.