Economic Times: Gold tumbles as Bernanke sees Fed tapering later this year

Gold fell more than 1 per cent on Wednesday after Federal Reserve chief Ben Bernanke said the US central bank still expects to start scaling back its massive bond purchase program later this year.

Bullion briefly rose above the $1,300 mark after Bernanke said in testimony before a congressional committee that he left open the option of changing stimulus exit plans if the economic outlook grew worse.

However, the rally quickly faded after Bernanke reiterated that the Fed would likely reduce its program of buying $85 billion of bonds a month, known as quantitative easing, later in 2013 and halt it altogether by mid-2014.

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