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Daily Digit: Gold near 3 year low

Wednesday, Jun 26, 2013 - 00:55

June 26 - Gold slumps to a near three-year low as healthy U.S. data supported the Federal Reserve's plan to cut back its stimulus. As Hayley Platt reports reassurance that Europe was not about to follow suit also helped.

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2.3 percent is today's daily digit - the fall in gold following central bank news. It slumped to a new three year low as did silver which fell nearly 4 percent. The cause was US consumer confidence hitting a five-year high on top of the Federal Reserve's commitment to cutting back on stimulus. Reassurances from Europe that it wasn't about to do the same also helped. CMC Market's Michael Hewson (SOUNDBITE) (English): MICHAEL HEWSON, MARKET ANALYST, CMC MARKETS, SAYING: "The key level for me was the 1500 level which we broke a few weeks ago and that's when I started to turn decidedly bearish on the yellow metal and I think Bernanke's comments last week were really the final nail in the coffin." Gold is always seen as a hedge against the kind of inflation money printing by central banks can lead to. The soothing words from central bankers also helped steady shares.

Daily Digit: Gold near 3 year low

Wednesday, Jun 26, 2013 - 00:55

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