Gold continue to decline

Gold price fell for a third day against the dollar strengthening as gold traders are worried that the Fed may raise interest rates sooner than expected.

The Federal Reserve Bank of Boston President Eric Rosengren spoke in favor of raising interest rates, prompting speculation that the central bank may raise interest rates in September.

Economic data from the US in the last week, including reports on jobs and manufacturing supported gold, as it reduces expectations for a September hike. At the same time the gold market also reacts to the statements of the heads of the Fed, which leads to sharp fluctuations in prices in a low volume of transactions.

"This week it seems that activity in the market is low, and it seems that it will be the whole of September.", - Said Peter Hug from Kitco Metals. "It makes traders nervous, and so the market moves so smoothly", - he added.

The probability of a September rate hike makes investors nervous, prompting some of them to reduce long positions in gold, said Haq.

The cost of the October futures for gold on the COMEX fell to $ 1330.3 per ounce.