Gold prices have fallen to a seven week low. This drop in price was a result of the news when Federal Reserve neglected and rejected any further stimulus measures. It was also due to the reduced demand for metal due to stronger dollar as an alternative investment option.
Gold dropped by 2.3 per cent to reach US $1,625.30 per ounce. This was the lowest price at which gold was being traded since October 21st.
It was not only gold where a dip was observed, Silver also observed a dip of around 5 per cent to reach US $29.70 per ounce. This was the lowest price at which silver was being traded since October 5.
A slide down of 2.6 per cent was observed in the prices of gold on Tuesday after Federal Reserve in the US said that the economy of USA is maintaining its continuous expansion. The Federal also was hesitant to any new action to further strengthen the economy as a whole.