With just a week out from the FOMC monetary policy statement gold investors remain watchful as gold prices (GLD, quote) continue to fall more than $3.50 ahead of the U.S. open.
Liquid gold being poured into a cast to make a bullion bar
The most notable drop in gold price was gold/rupee. Strong appreciation in the rupee continues to force gold price lower ahead of Indian festival, historically represents the highest demand for gold in India in turn pushing prices across the board.
Since hitting $1,179.40 a 52 week low back on June 28th gold prices have slowly climbed over 15% before hitting the 150 day moving average and turned sideways.
The talk of postponing and now the actual postponing of Syria action has helped to move gold prices slightly lower coupled with speculation that the Federal Reserve will begin some type of unwinding of its monthly $85 billion asset buying program continues to weigh gold prices.
We should continue to see weakness in gold prices during this void of no military action and the Federal Reserve’s scheduled statement in one week.