10-30-13 10:47 PM EDT | Email Article

By Shawn Langlois, MarketWatch


LOS ANGELES (MarketWatch) -- Gold futures trickled lower Thursday in electronic trading, failing to extend gains in the wake of the Federal Reserve's decision to stay the course on its monetary stimulus program.


Gold for December delivery (GCZ3) lost another $12.50, or 0.9%, to $1,336.80 an ounce. December silver (SIZ3), meanwhile, was hit even harder, giving up 59 cents, or 2.7%, to $22.39 an ounce.


A day earlier, gold prices rose after data showing a slowdown in U.S. private-sector job growth in October reinforced expectations that the Fed's taper playing won't be taking place anytime soon.


The Federal Reserve decided Wednesday to hold monetary policy steady, saying that conditions remained too weak to pull back from its bond-buying program.


"The question remains how much of this extended [quantitative easing] is gold pricing already?" said Standard Bank's Walter de Wet. "Given that the consensus view is for tapering to start later in 2014, we believe that gold is already reflecting this more accommodative policy stance to a large degree."


The next big event for gold traders to keep an eye on will be next month's Senate confirmation hearing for Janet Yellen as Fed chief. Jeffrey Wright, managing director at H.C. Wainwright, said this should be supportive for gold, considering her dovish stance on monetary policy.


Elsewhere in metals trading, high-grade copper (HGZ3) shed 2 cents, or 0.6%, to $3.31 a pound, while January platinum (PLF4) lost $19.90, or 1.4%, to $1,460 an ounce and December palladium (PAZ3) fell $6.10, or 0.8%, to $743.40 an ounce.

-Shawn Langlois; 415-439-6400; AskNewswires@dowjones.com


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10-30-13 2247ET

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