LONDON: Gold prices dipped below $1,200 an ounce on Thursday and silver slid to a 4-1/2 year low after the Federal Reserve ended its bond-buying stimulus programme with unexpectedly upbeat comments about the economy.

Spot gold fell as low as $1,199.90 an ounce and was down 0.7 per cent at $1,203.30 an ounce at 1447 GMT. US December gold futures were down $22.30 at $1,202.60. Silver was down 3.2pc at $16.50 an ounce, having earlier hit its lowest since March 2010 at $16.45.

Although gold prices are expected to find good support at $1,200 an ounce, a key psychological chart level, analysts said downward momentum remains strong.

Published in Dawn, October 31st, 2014