Metals decline as traders wait for Federal Reserve

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Associated Press

Posted on June 18, 2013 at 1:00 PM

Updated Tuesday, Jun 18 at 1:02 PM

Metal prices are falling as traders anticipate that the Federal Reserve will start to ease its support for the economy.

The price of gold fell $16.20, or 1.2 percent, to $1,366.90 an ounce. Palladium and silver also declined. Only platinum bucked the trend and edged higher.

The central bank will end its two-day policy meeting Wednesday. Until this year, the Fed's bond-buying stimulus program had helped drive gold prices to record highs. Many investors thought the Fed's efforts to pump money into the financial system would lead to high inflation, and they bought gold as insurance.

The Fed may now signal it intends to ease its stimulus as the economy recovers and inflation remains tame.

In trading of agricultural products, corn, wheat and soybeans all rose.

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