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Gold Slips Below $1,700

The price of gold was moving lower Thursday morning on profit taking after the U.S. Federal Reserve announced additional bond purchase program.

Gold for February delivery, the most actively traded contract, shed $23.70 to $1,694.20 an ounce. Yesterday, gold settled higher after the Fed announced that it will replace its "Operation Twist" program, which expires at the end of the year, with the purchase of longer-term Treasury securities at a pace of $45 billion per month.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,351.42 tons.

Meanwhile, the U.S. dollar was trading near its one-week low versus the euro and a 5-week low against sterling. The buck was hovering near its 9-month high versus the yen and flat against the Swiss franc.

In economic news from the euro zone, the Swiss National Bank decided to leave its minimum exchange rate of CHF 1.20 per euro unchanged as widely expected by economists. The target range for the three-month Libor was maintained at 0.0-0.25 percent.

The prices of silver and platinum were moving lower in morning deals.

From the U.S., the Labor Department will release its report on the producer price index for November at 8:30 am ET. Economists expect the headline index for November to have declined by 0.5 percent, while core producer prices may have risen by 0.2 percent.

Simultaneously, the Commerce Department will release its retail sales report. For November, economists estimate a 0.6 percent increase each in retail sales. Excluding autos, sales are expected to have remained unchanged.

by RTT Staff Writer

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