Gold today fell to the lowest level in more than 2-1/2 years after US Federal Reserve Chairman Ben S Bernanke said asset purchases may be reduced later this year as the US economy recovers.

Gold dropped 3.4 per cent to $1,304.75 an ounce, its lowest since September 30, 2010.

Silver also fell 6.2 per cent to $20.08 an ounce, the cheapest since September 14, 2010.

Bernanke said the central bank, which currently buys $85 billion of Treasury and mortgage debt each month, may begin reducing purchases this year and end the programme in 2014 should the economy continue to improve.

(This article was published on June 20, 2013)
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