Gold prices dropped as the U.S. Federal Reserve said it will begin shrinking its $4.5 trillion balance sheet in October.

Immediately after the announcement, the yellow metal began to plummet, with December Comex gold last seen trading at $1,306.20, down 0.34% on the day.

In a widely expected decision, the Fed said it will begin to unwind its $4.5 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities in October by cutting up to $10 billion per month from maturing securities it reinvests.



Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.