Gold Hits Two-year Low After Fed Announces Stimulus Cut

The price of gold hit $1,195 per ounce, the lowest since the summer of 2010

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The price of gold hit its lowest level in more than two years after the Federal Reserve announced that it would begin cutting back on its massive bond-buying to prop up the economy.

The price of the metal fell more than $36 on Thursday to reach $1,195 per ounce, the lowest level since August 2010, USA Today reports. In recent years, economic volatility caused the price of gold to rise as investors put their money in the metal as a safe way to ride out a downturn.

Some currency experts have characterized the drop as a reflexive sell-off from investors looking to lock in profits from their investments in the metal.

[USA Today]