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Gold slumped heading for its biggest weekly loss in more than two months, on speculation the U.S. Federal Reserve will taper asset purchases and as Goldman Sachs Group Inc. predicted further declines. Bullion for immediate delivery fell as much as 1 percent to $1,308.18 an ounce. Spot Gold is currently trading at $1315.60. MCX Gold Oct is currently at Rs. 29774, it is trading down by 273 points for the day. Comex Silver is currently trading at $21.78 whereas MCX Silver Dec is currently trading at Rs. 49773.
Federal Reserve Chairman meeting next week are poised to take two steps that appear inconsistent. They will probably lower their estimates for growth for this year and next for the third consecutive time. Simultaneously, they are forecast to start scaling back the $85 billion in monthly bond purchases they have been relying on to stoke the recovery. Borrowing costs increased on the mere mention at Bernanke’s last press conference, following the June policy meeting, of a tapering of bond purchases sometime this year.