The price of gold has fallen sharply

Gold prices fell by almost 1% on Monday, departing from the six-month maximum, as the dollar rose and the cost of high-risk assets, such as stocks, euro, oil and other commodities fell.

Gold continues to build, and aims to grow more and more, after central banks including the Federal Reserve and the European Central Bank, have announced a new round of easing monetary policy at the beginning of this month.

Further monetary easing is likely to keep the pressure on long-term interest rates, and increasing the appeal of gold.

Note that many investors bought before announcing QE3, but now they are again selling gold to take profits. But long-term players are still in the market, and in particular this exchange-traded funds.

Due to the stronger dollar and caution among investors about the uncertain prospects for Europe the price of gold may continue to decline, but only in the short term.

The data also showed that the stock of gold in exchange-traded funds have grown by nearly 330,000 ounces on Friday to the level of 73.748 million ounces, updating the high of the last week at 73.681 million ounces.

Most of the inflows were seen in the largest fund SPDR Gold Trust, which issues securities backed by physical metal, which is a very popular way to invest in gold in recent years.

Meanwhile, consumer demand for gold in India has grown, as the decline in local prices to three-week low sparked a wave of purchases.

October futures price of gold on the COMEX is now 1766.0 dollars per ounce.