Gold plunges 3 % ahead of Fed meeting

Gold dropped 3 per cent on Wednesday as news of a sharp rise in US durable goods orders prompted more profit-taking on bullion's to record highs ahead of a Federal Reserve gathering this week. Gold appeared headed for for its biggest two-day decline in almost three years. It had rallied nearly 9 per cent in six sessions before Tuesday's fall on speculation the Federal Reserve might be planning another round of stimulus for the sluggish US economy. Analysts said it's time for gold investors to take money off the table after a safe-haven rally extended too far, too fast in recent weeks. Bullion was up by as much as $400 since July. Spot gold was down 2.5 per cent at $1,783.29 an ounce by 11:03am EDT (1503 GMT), off its session low of $1,762.90. On Tuesday, it dropped about 4 per cent after an early rise to a record $1,911.46.