Gold Falls to $1,374.95 an Ounce

Gold continued its decline May 21 as the U.S. dollar strengthened and speculation that the U.S. Federal Reserve may reduce its stimulus program rises. Reuters reported spot gold hit a session low of $1,374.95 an ounce today. U.S. gold futures for June delivery were also down to $1,377.10 an ounce, a decline of nearly $35.

“The market was caught horribly short yesterday, so there was some buying this morning,” Marex Spectron head trader David Govett told Reuters. “But the dollar (got) stronger, gold didn’t manage to break above $1,400 and sales started again. The market is being driven by algos trading on the CME (Chicago Mercantile Exchange) platform while the real money, the big funds, are not playing in this.”

Today’s fall in gold prices comes a day after gold made its first gain in eight sessions. On May 20, gold rose 1.4 percent, Bloomberg reported. The source also reported that gold prices in London fell today by  $15.17 to $1,378.80 an ounce.