Gold futures end 1% lower after Fed policy change

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Gold futures fell Thursday, with some analysts attributing the loss to the lack of surprise in the Federal Reserve’s approval of changes to its monetary policy strategy that looks to lead to an easier monetary policy stance. Gold prices initially rallied as Fed Chairman Jerome Powell “laid out a medium-term plan to maintain the Fed’s accommodative monetary policy stance,” said Cailin Birch, global economist at The Economist Intelligence Unit. “They quickly fell back, however, which most likely reflects the fact that this approach was broadly anticipated.” In the coming days, the market will be picking apart the Fed’s new strategy, which “aims to bring inflation above the average 2% for some time to compensate for below-target inflation in recent years,” she said, adding that “this is likely to continue to drive gold-price volatility.” December gold fell $19.90, or 1%, to settle at $1,932.60 an ounce after trading as high as $1,987 during the session.
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