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.
