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Gold Weakens Even as Chances for QE3 Increase

June 26, 2012 at 21:49 by Vladimir Vyun

Quite a few commodities rallied today, but gold was not among them. The rally was caused by negative fundamental data from the United States. Usually, bad fundamentals drive raw materials down, but in this case poor data increases chances for QE3. Gold should have profited from that, but it actually dropped.

The question arises: if anything can lift the precious metal that was trading in a wide range since June 1, when it demonstrated a huge jump? Maybe uncertainty about the future of the European Union? Perhaps. Indeed, the metal advanced yesterday, when tensions were high. Today, though, gold gave away its yesterday’s gains.

Gold dropped from $1,583.50 to $1,573.60 per ounce as of 21:45 GMT on COMEX today.

If you have any questions and comments on the commodities today, use the form below to reply.

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