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Gold prices fell more than 1%, thus reaching the lowest value in the last month amid uncertainty in the negotiations related to the problem of "fiscal cliff."
Note that investors are divided over the question about the potential impact of negotiations on the price of gold, making the precious metal "hostage technical pressure."
Analysts noted that the rapid decline in gold prices below the key level of $ 1,700 per ounce was caused accumulation of a large number of stop loss orders.
Also note that the break of the key psychological level of $ 1,700 to move below the 100-day, which fluctuates at around $ 1,695, it was the first time since mid-August, which ultimately increase sales, and has led to the fact that prices fell to $ 1,690 an ounce.
As a result of this, we note from precious metals trading positions upcoming key political decisions (the Fed meeting next week, and the ongoing negotiations on the "financial cliff") become more difficult, given the lack of clarity in the direction of the next movement of gold, many have chosen to stay away .
Also, investors focused on the prospects for employment in the non-agricultural sector of the U.S., which will be presented on Friday, and have a great relationship between job creation and monetary policy. Note that the lack of new jobs could mean that the current ultrasoft monetary policy will continue.
December futures price of gold on the COMEX is now 1696.70 an ounce.
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