Possible September Stimulus Pullback Pushes Gold Down to $1,272.64 an Ounce

Gold prices fell Aug. 7 to a low not seen in three weeks. Fears the Federal Reserve will slow its stimulus program starting next month pushed gold down to $1,272.64 an ounce earlier in the session, the lowest level since July 17, according to Reuters. The precious metal later recovered, with prices at $1,286.40 an ounce.

Gold futures for December also rose after an earlier low. Futures increased $2.57to $1,285 an ounce.

“It does very much look as though the Fed is keen to go ahead with its tapering, perhaps starting as soon as September and that has added a little negative sentiment to the gold market,” Natixis analyst Nic Brown told Reuters.

The U.S. economy grew more than expected in the second quarter of the year, and three Fed officials have now confirmed September may be when the stimulus program is reigned in, Reuters reported.