Gold declines as precious metals buyers respond to Fed decision

The price of various gold contracts declined on June 20, as precious metals buyers responded to the potential outcomes of the Fed policy meeting.

Spot gold was 0.6 percent lower at $1,607.56 an ounce at 08:05 EDT, down from its value of $1,616.60 an ounce late on the previous day, according to Reuters. August gold futures were valued at $1,616.10 per ounce on the Comex division of the New York Mercantile Exchange.

Gold bullion for immediate delivery was trading 0.1 percent lower at $1,617.02 an ounce by 9:16 a.m. in London, reports Bloomberg News. At the time, August Comex gold was 0.4 percent less at $1,617.50 per ounce.

After declining for four months in a row, gold prices have surged by more than 3 percent so far in June amid fresh speculation that the U.S. central bank will utilize quantitative easing (QE) to stimulate the economy, according to Reuters.

"It's most likely we will get an extension to Twist and an 'open door' to further stimulus, but no QE3 as such," VTB Capital PLC analyst Andrey Kryuchenkov told the news source. "Markets could well be disappointed."