Gold prices were hammered Tuesday as gold futures closed up 2.3% on the day as the Federal Reserve cut its benchmark overnight interest rate.
The Federal Reserve’s benchmark overnight rate will remain at zero for the foreseeable future.
The dollar has tumbled to a 14-year low against a basket of currencies and is trading near the lowest levels in more than six years.
Gold and silver prices also fell as investors weighed up the outlook for the Federal Government’s economic forecast.
Gold futures for January delivery dropped 0.6%, while silver was down 0.1%.
The copper, nickel and gold markets also fell.
Gold fell $2.12 to $1,246.36 an ounce, while silver fell $1.75 to $2,966.60 an ounce.
Silver rose $2 to $10.29 an ounce while gold slipped $0.6 to $12.68 an ounce in New York.
Gold fell to $15,947.62 an ounce last Friday.
Silver rose 0.3%, while copper and nickel rose 0,1% and 0.5%, respectively.
Gold rose 1.6% on Tuesday, while gold and silver were both up 0.2%.