The U.S. Central Bank is likely to maintain the status quo of its monetary policy through later this year, according to James Bullard, president of the Federal Reserve Bank of St. Louis. Expectations about declining inflation have reduced the need to pull back stimulus, he said.
"Inflation expectations have been easing lately a bit," Dan Smith, an analyst at Standard Chartered in London, told the news service. "Gold is looking for another reason to break higher. It lacks a trigger."
At 8:50 a.m. on Thursday, gold futures dropped 0.47 percent, a $7 dip to $1,488.80 per troy ounce.
Since notching the all-time record price of $1,577-plus per troy ounce earlier this month, gold futures have lost more than 5 percent of their value. The slump in performance directly controverts the precious metal's performance last month, when it repeatedly set and broke record-high prices in at least half of April's trading sessions. The driver of those record pushes was fears of inflation.
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