Gold Settles At $1,612.60, Down With Commodities

MarketWatch reported the drop in the price of gold, down by 0.6% to $1,612.60 an ounce. With the absence of market-moving headlines during the quiet summer months, gold volume tends to be low and tends to track commodity prices.

As quoted in the press release:

Prices for the yellow metal have recently moved higher on hopes that more central-bank action and monetary stimulus will be forthcoming. Fundamentally, however, not all is well for gold.

Analysts at Barclays Capital commented:

While concerns over inflation and potential monetary easing bode well for gold, the metal is missing the support of a solid floor. Physical demand has shown signs of life, but remains fragile as India enters the seasonally strong period for consumption.

Click here to read the full MarketWatch report.