MSN Money
Associated Press
Mining company shares fell sharply Thursday as the Federal Reserve’s decision to reduce bond purchases drove down prices for gold and silver.
The Fed said Wednesday that it would reduce its monthly bond purchases to $75 billion from $85 billion beginning in January, citing a stronger jobs market. The Fed said it will still keep short-term interest rates very low.
This announcement boosted a general confidence in an economic recovery, but sent the price of precious metals down sharply.
Gold fell $38.40, or 3 percent, to $1,196.60 an ounce. It could be the first annual price decline for gold in more than a decade. Silver prices fell almost 4 percent.