Gold Extends Decline on Prospects for Further Tapering by Fed

Gold retreated for a second day, extending the biggest drop in three weeks, on prospects for further cuts to the Federal Reserve’s stimulus program as the U.S economy shows signs of recovery. Silver fell.

Bullion for immediate delivery lost as much as 0.5 percent to $1,295.88 an ounce and traded $1,296.83 in Singapore. The metal slumped 1.9 percent on 14 April, the most since March 24.

Gold ended a 12-year bull run in 2013 on expectations that the Fed would cut stimulus as the largest economy recovered. Fed Chair Janet Yellen is scheduled to address the Economic Club of New York on 15 April after data showed that U.S. consumer prices accelerated in March. Bullion has rebounded 7.9 percent this year as unrest in Ukraine spurred haven demand.