Summary Box: Gold, silver plummet on Fed's outlook

AP News

3/14/2012 4:18:10 PM - AP News

UNDER PRESSURE: Gold and silver prices plummeted as the Federal Reserve's more optimistic outlook for the economy dashed hopes that the central bank would take additional steps to stimulate growth. Investors had been hoping that the Fed would consider another round of bond purchases to help the economy.

DOLLAR'S IMPACT: The dollar grew stronger after the Fed's comments. Since commodities are priced in dollars, a stronger dollar makes them more expensive for traders who use other currencies like the Japanese yen and the euro.

PLENTIFUL OIL: Crude oil prices fell after the government said inventories expanded last week. Prices for other energy products also declined.