Gold Sinks to $1,279.24 Amid Narrowing U.S. Trade Deficit

Gold prices tumbled as much as 1.9 percent or $24.31 to $1,279.24 an ounce Aug. 6. U.S. gold futures were also down $22.10 to $1,280.30 an ounce today.

The precious metal has fallen to its lowest level since July 18 due to positive economic data in the United States and Europe and lower physical demand in China. Reuters reported the U.S. trade deficit narrowed to a three and a half-year low in June.

“[I]t does feel as the prevailing dollar strength is curtailing gold momentum,” bullion dealer Sharps Pixley CEO Ross Norman told Reuters. “It is hard to read too much into moves during the summer months as the market can fluctuate widely on very small trades.”

Bloomberg reported gold may see its first annual decline in 13 years this year.