Economist Shayne Heffernan takes a look at the Gold Price
Our traders report that immediate-delivery gold was little changed at $1,657.90 in Singapore, poised for a third monthly gain.
December-delivery gold fell as much as 0.4 % to $1,656.70 an ounce on the Comex, and was at $1,660.30. Gold is poised to decline for a second day on opinion that the U.S. Federal Reserve will refrain from additional stimulus amid signs the world's largest economy is improving.
Spot Gold was little changed at $1,657.90 an ounce in Asian hours , poised for a third monthly gain. December-delivery gold fell as much as 0.4 % to $1,656.70 an ounce on the Comex, and was at $1,660.30.
The U.S. economy grew at a 1.7 % annual rate in the second quarter, up from an initial estimate of 1.5 %, data showed yesterday. The Fed said yesterday in its Beige Book survey that the economy continued to expand "gradually" in July and early August.. Gold has risen 2.7 % this month and is set for the biggest gain since January.
As the recent rally has been based on false hope of QE3, we expect a sell off on Friday/Monday at which point Gold will become a bargain.
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