Gold fell 1.1 percent or $13.63 to $1,239 an ounce on Tuesday, down from Monday’s six-week high, according to Reuters. Equities firmed up and the dollar recovered after speculation that the U.S. Federal Reserve may taper its bond-buying program even more at its next meeting, which will take place Jan. 28-29. At its December policy meeting, the Fed decided to cut its monthly bond purchases by $10 billion. According to Reuters, reports say the bank may take another $10 billion off of its monthly bond-buying.
“Dollar strength is really the driver for gold and talks that the Fed is more likely to trim its bond buying further in February added even more pressure,” Societe Generale analyst Robin Bhar told Reuters.
U.S. gold futures for February delivery fell $11.30 to $1,240.10 per ounce.