The price of gold fell below $ 1,700 an ounce

Despite the slight increase for most of the day, the price of gold fell sharply, down with below $ 1700 per ounce.

Note that this trend was due to the tension that was connected with the decision of U.S. lawmakers question of "fiscal cliff." In addition, many investors have decided to reduce their positions in precious metals before the new year.

According to analysts, amid loose monetary policy of the U.S. Federal Reserve, Reserve and other central banks to support prices, as investors are increasingly worried about the decline rates and inflation rise, forcing them to look for other safe assets.

Recall that the price of gold hit its highest level in a month last week after the Federal Reserve announced a new round of monetary stimulus in the form of purchase of treasury bonds in the amount of $ 45 billion a month. But, despite this, a little later fall in prices continued.

Furthermore, economists predict that physical demand from China will increase the eve of Chinese New Year, which is celebrated in February. They also noticed that, as we enter a seasonally strong demand from China, it can support the price of gold up to the beginning of the Chinese New Year.

February futures price of gold on the COMEX fell today to 1693.80 dollars per ounce.