by David Levenstein, Gold Silver Worlds:
Gold prices broke below the $1300 an ounce level last week hitting a three-week low, weighed down by a stronger U.S. dollar and some upbeat U.S. economic data. And, prices have remained under some downward pressure this week.
It seems that prices have fallen due to trader activity on the futures markets of Comex, as sentiment towards gold has once again turned bearish on renewed speculation the Federal Reserve could soon start scaling back its monetary stimulus programme. An end to the Fed’s quantitative easing programme is expected to hurt assets such as gold and silver, which has been boosted by central bank liquidity and low interest rates.
The US dollar gained against most of its peers sending the price of gold lower as positive third quarter GDP growth and a much-better-than expected jobs report boosted the greenback further pressuring gold.
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