Gold prices slumped to their lowest level in nearly three years Wednesday after a selloff at the start of Asian trading reverberated through trading floors in London and New York.
The most actively traded contract, for August delivery, fell $45.30, or 3.6%, to $1,229.80 a troy ounce on the Comex division of the New York Mercantile Exchange. This was gold's lowest settlement price since Aug. 23, 2010. Gold for June delivery also fell 3.6%, down $45.20 to settle at $1,229.60 an ounce….
On Tuesday, data showed a pickup in durable-goods orders and housing construction, while consumer confidence climbed back to prefinancial crisis levels. Investors and traders have been scrutinizing every economic report to get a sense of when the Fed might scale back an $85 billion-a-month bond-buying program. The Fed has said it would end the program when the economy shows continued improvement.