The Federal Reserve will decrease the amount of bonds purchased by the United States central bank, Chairman Ben Bernanke said Wednesday, by roughly $10 billion per month.

Bernanke was about to make his last scheduled news conference as head of the Fed on Wednesday afternoon when the bank’s newest plan was revealed.

The Fed has up until now spent $85 billion a month on bond purchases, but will reduce that significantly and split the difference in reductions to both mortgage-backed securities and Treasury securities.

“In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions, the Committee decided to modestly reduce the pace of its asset purchases,” reads a statement from the bank.

“Beginning in January, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $35 billion per month rather than $40 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $40 billion per month rather than $45 billion per month.”

The Federal Open Market Committee, or FOMC, voted near-unanimously for the change. The only dissenter was Eric S. Rosengren, according to a statement released Wednesday by the Fed, who feared a policy change was being enacted too much, too soon.

“[W]ith the unemployment rate still elevated and the inflation rate well below the target, changes in the purchase program are premature until incoming data more clearly indicate that economic growth is likely to be sustained above its potential rate,” Rosengren argued, according to the statement released by the central bank.

A Staff Economic Projections report also released by the FOMC on Wednesday was more optimistic, however. According to that study, the committee believes the 2014 unemployment rate forcast may now range from 6.3 to 6.6 percent, down from a range of 6.4 to 6.8 percent.

Upon news of the changes, stocks in the US rose almost immediately. Within minutes, the Dow Jones industrial average rose by 0.32 percent to 15,925.69, and the S&P 500 gained 0.02 points to 1,781.02, Reuters reported.

Bernanke will exit his role with the Fed in January and pass the torch to Janet Yellen, the current vice chair of the Board of Governors of the Federal Reserve System who is expected to continue Bernanke’s policies while at the bank’s helm.

I concur with Gary 100%. FWIW……Since gold has been in a bear market for almost 3 years all this wealth coming out of paper will find gold. Because its way off its highs. If gold was rallying at near highs it would sell off with equities as well….IMVHO

Gold gets body slammed by the Fed in the last hour to a low of 1215.20.
Unlimited digital money, the Fed can make stocks go up 300 points and slam gold down.
Same song, same verse.

Its a buying opportunity. I bought gold mining shares right before the close …..WHAT A DEAL. I knew they would take it down…early rally was to good to be true.

JUST KEEP AVERAGING IN ON NICE PULL BACKS. When it turns…LOOK OUT ! IMVHO

It is time to wave the white flag.

Most people on this site, including myself I must admit, got it wrong.

We held on to the belief that gold would turn. We lived in a state of denial.
I must confess there was some of that in me as well, as I watched a classic bear market unfold before my eyes, and did nothing, like a dear in the headlights.

Now today I believe we must all finally wake up to the fact that gold is dead.

The bear market is only just warming up.

If you watched Mr. Bernanke today, you witnessed a maestro weave and spin his way out the door after claiming victory for saving the global economy and patting himself on the proverbial back.

Bernanke did it.

He managed to jump start the economy, save the banks, decrease unemployment, resurrect peoples 401k and keep people in their homes while making it more affordable. All the while keeping inflation at bay.

It truly was a remarkable feat. And he succeeded.

I said the other day the stock market is expecting a taper, and is welcoming a taper.
And that is exactly what they got.

It was just the right amount delivered with just the right verbiage to send stocks to the sky all time record highs while gold tanked.

It truly was the turn and the game changer.

From this point forward we can expect to see ever increasing stocks prices and lower and lower gold prices.

And why shouldn’t it be this way?
No hedge fund manager will miss out on this party.

No one here needs gold.

Let the Chinese have our worthless dollars, and now let them have worthless gold as well.

They will still need to buy our treasuries to save themselves.

As 2013 comes to an end and 2014 gets underway I expect things to get much worse for gold investors.

I said the price of gold is being executed and we need a $100 to $200 drop to kill it.
I think today we got the call.

Laugh if you want, but the facts are the facts.
The gold bulls were wrong, we backed the wrong horse.

Many of you will still cling to manipulation.
Many will still listen intently to every word from KWN.
Many will still be a disciple of Peter Schiff, who now must figure out a way to save face.

It’s funny I don’t see a lot of the names that used to be outspoken gold bugs on this site anymore. I think many of them faded like gold.

I too intend to fade.

A new year brings new endeavors. It is time to move on.

Until next year happy holidays and happy new year…

Hi James. Im a goldbug, yesterday I said if gold went up it would only be for a little bit then down. Thats what happened.
Im still a goldbug, and I dont care if it goes to $1, Im still a goldbug.
But your right , when the fed says they gonna print 85 billion ya gotta expect some of it going to equities=they go up.
Gold, they dont like=it goes down.
Yup, its manipulation,no excuse, but it is,but kinda dum not to understand and profit from it, especially when they tell ya just what they gonna do. But its still manipulation.

Most people are ignoreing this, 170,000 tons of gold, most goldbugs dont want to know of it, easier to pretend its not there maybe. Plain normal human behaviour to ignore what we dont believe. Works the same for religion and probly everything actually.
My point, gold should go down (nice if it was 200 all at once) to about $1000, at that point the chinese should step up their buying.(to save face) Thing is, we dont know how much is available to meet demand, thus the importance of the 170,000 tons.
Another point not mentioned I believe, the Chinese buy 100-150- tons per month,
How much gold is 5% of what? 3 trillion they have in american dollars?
If it worked out to 5% of reserves, they really are not buying lots. Too many zeros for me to figure out.
Nice to know tho.
Anyway James, gold could get hammered to any number if that 170,000 tons is used and should the americans decide to access those huge oilfields they have. I would say they would get the preverbial last laff that round.
That, would mean you are absolutly correct.

He managed to jump start the economy, save the banks, decrease unemployment, resurrect peoples 401k and keep people in their homes while making it more affordable. All the while keeping inflation at bay.

James,you might believe that codswallop but reality states both you and Benny are in some major denial of facts.
Hate gold all you want but get it together ,bud.You are a beaten man to the point of delusion.
Good thing the season will cheer you up.You need it. Best to you.

Unemployment : 24% and rising-no decrease except in Benny LA LA Fed land
http://www.shadowstats.com/alternate_data/unemployment-charts
Next you can move on to the money printing / debts/deficit accrued under Bernanke.
Then you can research the hundreds of US banks that foreclosed due to what Bernanke’s Fed did to America.Then tell us how the trillions of dollars forced upon US citizens to prop up major banks that should have gone under will help anybody.
Then give us the homeless stats nation wide and the number of US citizens having to survive on food stamps.
Just because the Fed and associated US banks can illegally rig markets to suit their purposes does not mean all of us buy the BS they push to prop up the stats and what they have done to the US citizens and the world.
Pull out a monthly chart on gold and tell me it has broken down-pfffffffffffft.
The Fed is a colossal,diabolical failure for the US and her people and has been for one hundred years.

Pull out a monthly chart on gold and tell me it has broken down-pfffffffffffft.

Not yet Matt!

Al, Market Anthropology comments “With respect to the US dollar, we continue to expect the USDX to make another push lower towards the bottom of its long-term range. At the end of the Fed’s previous accommodative cycles (1977, 1994 and 2004) – the dollar has initially come under pressure and tested the bottom of the range.” Check out their comments; if history is an indication then gold should finally reverse. The Third Choir http://www.marketanthropology.com/