Gold slides from 6-week high

Chicago (jan 24)  Gold has fallen from a six-week high today (January 24th), as investors weighed the prospect of the Federal Reserve further tapering its quantitative easing programme.

Yesterday, the commodity climbed by 2.2 per cent - its largest single-session rise since October - after US data showed purchases of previously-owned homes and the Chicago Federal National Activity Index came in below estimates.

In addition, the number of Americans filing initial claims for unemployment benefits unexpectedly increased.

Fed policymakers are due to meet on January 28th for a two-day gathering and will discuss whether to further reduce the bank's monthly asset purchases.

Concerns regarding the end of this stimulus were the driving force behind the precious metal's decline in 2013, which brought an end to a 12-year bull run.

Gold for April delivery shed 0.3 per cent in early electronic trading on the Comex division of the New York Mercantile Exchange, dropping to $1,258.70 per ounce.