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Gold prices fell sharply, dropping at the same time to the $ 1277 that was related to statements by Federal Reserve Chairman Ben Bernanke, who said that the U.S. central bank still expects minimize their stimulus measures later this year, but, nevertheless, there is likely to change. We also add that during the question and answer session, Bernanke said that the U.S. is in a difficult financial situation, the complexity is communication with the markets, but they have begun to understand the thinking of the Fed. He said that the financial policy is only for the short term.
It is worth noting that this year the price of gold has fallen by nearly 25% on fears that the Fed will limit the terms of quantitative easing, which brought gold to record highs in recent years, as well as put pressure on long-term interest rates, while as inflation fears stoked. Add that earlier this year, the Fed said it may reduce the bond-buying program, but more dovish tone Bernanke later led to a sharp fall in the dollar and a rebound in gold.
Gold reached a three-week high last Thursday, but have not been able to exceed the level of $ 1,300 per ounce. Physical demand also declined as prices rebounded from recent lows. Buying interest from China has also been reduced in the last few days, which was associated with a fall in Shanghai premiums to about $ 25 per ounce to $ 36 last week.
The outflow of gold exchange-traded funds, which issue securities backed by physical bullion, continued on Tuesday. The largest fund SPDR Gold Trust reported a fall of 1.5 tons of supplies, which increased the loss for the year to the level of 413 tons.
The cost of the August gold futures on COMEX today dropped to $ 1282.80 per ounce.
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