Gold loses grip on $1,300 in sixth straight drop

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NEW YORK (MarketWatch) — Gold prices fell under the key $1,300-an-ounce mark on Tuesday as investors wrestled with uncertainty about the Federal Reserve’s timeline for reducing the flow of monetary stimulus.


The U.S. trade deficit fell 22.4% to $34.2 billion in June, the lowest since the fall of 2009. The drop in the trade deficit likely means the U.S. second-quarter growth figure will be revised higher.


Separately, President of the Atlanta Fed Bank Dennis Lockhart said Tuesday a step down in the Fed’s asset purchases could be announced at any of this year’s remaining policy meetings, including in October, when there is no press conference scheduled.

In another gloomy signal for gold, Dallas Federal Reserve Bank President Richard Fisher on Monday said the fall in the U.S. unemployment rate to 7.4% in July means the Fed is closer to slowing its asset purchases from $85 billion a month.

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