Gold: an overview of the market situation

Gold prices fell slightly today, as many traders prefer to stay out of the market ahead of U.S. Fed meeting, which may shed light on the rate at which the Fed will reduce rates of monetary stimulus. It should also be added that influenced the trading session could have the European Central Bank and the Bank of England, which is scheduled for this week and is expected to confirm previous recommendations.

Recall that last week, gold was back above the $ 1,300 that was the first time in a month, based on comments from Fed Chairman Ben Bernanke that a highly accommodative monetary policy will be needed for the foreseeable future, and that any reduction in the volume of purchases of bonds will be depend on the strength of the economy. The Fed previously said it would probably start reducing programs to stimulate the economy at the end of 2013, and stops all the way to the middle of 2014, which strengthened the dollar and made gold more expensive for foreign investors.

We also add the demand for gold jewelry in India, which is the major buyer of the precious metal, went into decline. According to experts, it is unlikely to gain momentum until the end of August, when activated by just buying season against the season of weddings and religious festivals.

In part on the dynamics of trade have influenced U.S. data. Conference Board released a report that showed that consumer expectations about the short-term outlook weakened in July and the corresponding indicator of consumer confidence in July fell more than expected. Conference Board said its consumer confidence index fell to 80.3 in July from a revised 82.1 in June. Economists had expected the index to fall to 81.1 from 81.4, which was originally reported in the previous month.

The cost of the August gold futures on COMEX today dropped to $ 1324.60 per ounce.