Released Tuesday, minutes from the March meeting of the Federal Open Market Committee indicate the policy makers will not deploy another round of monetary stimulus – unless the nation sees a reduced pace of economic growth. The price of the precious metal quickly fell 2 percent once the March 13 minutes were released.
"The Fed clearly expressed reduced interest on asset purchases," partner William O'Neill with Logic Advisors in New Jersey told Bloomberg. "We saw a knee-jerk reaction in the market after the potential for any kind of monetary-easing lessened."
At 5:15 p.m. on Tuesday, gold futures fell 0.46 percent, a $7.70 loss to $1,672 per troy ounce.
The Associated Press reports FOMC members expressed concerns about a reduced pace of economic development and growth in the U.S. That would mean that inflation is likely to remain stable, the news service reports.