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Gold edges lower as Fed uncertainty lingers

Gold slipped to $1,362.55 on Friday, its weakest since August 22

<a href="http://www.shutterstock.com/pic-115284682/stock-photo-many-gold-bars-background.html?src=QiSnLYS6ChuD3R-AfZRaag-1-34" target="_blank">Gold</a> image via Shutterstock

Reuters Singapore

 

Gold edged lower on Monday, dragged down by uncertainty over when the US Federal Reserve will trim the massive bond-buying programme that has boosted the metal's appeal as a hedge against inflation.
 
FUNDAMENTALS
 
* Gold had fallen $3.32 an ounce to $1,387.56 by 0012 GMT. It slipped to $1,362.55 on Friday, its weakest since August 22, before rallying more than 1% on weaker-than-expected US nonfarm payrolls.
 
* US gold was up $1.30 at $1,387.80 an ounce.
 
* US employers hired fewer workers than expected in August and the jobless rate hit a 4-1/2-year low as Americans gave up the search for work, complicating the Fed's decision on whether to scale back its monetary stimulus this month.
 
* But comments from Fed officials suggested the tapering plan is still on track. Esther George, the Kansas City Fed's consistently hawkish leader said she favoured trimming the bond-buying programme. Chicago Fed President Charles Evans said he could be swayed towards a pullback.
 

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First Published: Sep 09 2013 | 8:35 AM IST

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