The price of gold has fallen sharply

Gold prices fell on Wednesday as investors cut their open positions before the meeting of the heads of the central banks of the world, to be held over the weekend and be able to shed further light on the Fed policy.

Gold unable to break through its narrow trading range, and fell below the minimum values ​​of the previous day, on expectations that the Federal Reserve Chairman Ben Bernanke in a speech at the meeting will be able to give a clear hint at a new round of quantitative easing.

However, some market participants say that it can only repeat that the Fed has room for action, and to postpone consideration of the matter before the meeting, which is scheduled for September 12-13.

Investors also expect that the ECB will soon unveil an effective plan to deal with the high cost of borrowing of troubled countries, such as Spain and Italy.

Investment interest in gold remained elevated. Against this background, the world's largest exchange-traded fund, which issues securities backed by physical metal, recorded flow at just over 3 tonnes on Tuesday.

The cost of the August gold futures on the COMEX is now 1665.2 dollars per ounce.