Gold prices fell on Wednesday, but did not stray too far from their highest level in six months and recorded in the previous session, as weak U.S. data renewed hopes to pass a new stimulus package, while investors awaited a key meeting of the European Central this week which could fluctuate gold price.
Activity record U.S. manufacturing sector for the last month is the most severe contraction in more than three years, boosting hopes that the Federal Council takes the U.S. Federal Reserve (central bank) position in the near future to support the ailing economy and the rise of gold price.
European Central also exposed on the other hand is on growing pressure to reduce the cost of borrowing excess prior to the meeting to determine the policy to be held on Thursday.
Associated gold gains during the year significantly to the position of the Federal Reserve of the third round of quantitative easing, which if achieved it will enhance investors’ appetite for gold as a safe haven against inflation, which is caused by excessive currency printing.
The price of gold fell 0.2% to $ 1691.64 an ounce, while the price of gold remained almost stable at U.S. 1694.4 points, also helped slightly higher in the U.S. dollar in pressure on gold prices.
Among other precious metals decline in the price of silver in the spot market 0.56% to 32.12 dollars an ounce.
Platinum also fell 0.81% to $ 1549.99 an ounce and palladium 0.33% to $ 634.72 an ounce.