GOLD 22.06.2012 NEWS

GOLD 22.06.2012 Gold fell 2.5 percent on Thursday, on the verge of


wiping out this year's gains as renewed fears of a

global economic slowdown and disappointment over

a lack of aggressive U.S. Federal Reserve stimulus

dampened bullion's inflation-hedge appeal.

• The metal is on track to post its biggest one-day drop

for the year. Its sell-off started Wednesday when the

Fed ended its policy meeting without launching a

new round of monetary easing but instead opted to

lengthen its program aimed at lowering long-term

interest rates known as "Operation Twist,

• Silver slid more than 4 percent, following Brent crude

oil which tumbled over 3 percent a 18-month low and

steep losses on Wall Street. Thursday's sell-off in

assets amid a dimmer economic outlook lessened

the need of buying gold to hedge against inflation..

• Deflation worries pummelled precious metals after

several reports showed disappointing U.S

manufacturing activity, a shrinking Chinese factory

sector and slowing business activity across the euro

zone. The data added to fears that Europe's debt

crisis and slower growth in the United States and

Asia would cause downturns around the globe.