Gold price stabilized this morning at $1,620

The gold price stabilized this morning at $1,620 after dropping $41.00, or 2.5%, to $1,609.15 per ounce on Wednesday as precious metals’ weakness resumed and the U.S. dollar rallied.

The spot price of gold held steady near $1,650 for most of the morning, but plunged to an intra-day low of $1,597.80 as renewed liquidation engulfed the yellow metal. With the decline, the gold price extended its loss in September to 11.9%. In doing so, the price of gold is now on pace for its worst month since it plummeted 17.4% in October 2008.

Philadelphia Fed President Charles Plosser was the lastest central banker to criticize the accommodative monetary policies implemented by Chairman Ben Bernanke. In a speech on the economic outlook to the Business Leaders Forum at the Villanova School of Business, Plosser expressed his skepticism that Operation Twist would encourage businesses investment or consumer spending in light of the uncertain economic and fiscal environment in the U.S.