Due to speculations that the Federal Reserve will curb stimulus after financial agency Standard & Poor's outlook boost in the United States, investors considered an increase in holdings resulting in a drop in gold trade, the lowest in two weeks.
Gold prices decreased to $1,375.95 yesterday, the lowest it has been after Standard & Poor's lifting of the United States' credit rating outlook to 'stable' from negative. Delivery fell to $1,382.90 on the Comex, while bullion for immediate delivery tumbles 0.2 percent to $1,383.97 per ounce, 9:31 a.m. in Singapore.
"Gold is still a great insurance policy," said Gavin Wendt, director at Australia-based Mine Life Pty. "It's in a holding pattern because the market's looking for some kind of direction," he added.
This year, gold plummeted 17 percent as the US government's spending through its bond buying program is expected to be reduced.
A top gold mining company said that its assets will be written down by as much as ($5.7 billion) due to the global fall in prices.
Join the Conversation