Gold slumps to 4-year low as Fed calls time on QE

London

GOLD tumbled last week to a four-year low and many other commodities also faltered, as the US dollar rebounded after the Federal Reserve ended its quantitative easing stimulus. The euro dived below US$1.25 for the first time for more than two years, driven also by speculation that the US central bank could raise borrowing costs sooner than expected. The European single currency slid on Friday to US$1.2486, its lowest level since August 2012.

The stronger greenback makes US dollar-priced raw materials more expensive for buyers using weaker currencies, which tends to dent demand and prices.

Gold dived on Friday to US$1,161.16 per ounce, the lowest point since late July 2010. Gold has fallen sharply since the Fed said on Wednesday that it will end its QE polic…