Gold prices slumped on possibility of further tapering on moderate growth rate. Gold spot fell to $1238.62 by 0.48%
Traders have become bearish on Gold as U.S. economy continues moderate growth rate. Emerging economies have also retreated after falling on Fed tapering.
U.S. economy has started attracting investment from emerging economies. Bullion investors may shift their investment as tapering is expected to strengthen dollar. Today dollar index gained by 0.04% on negative result of Euro Consumer Price Index. Euro CPI dropped to 0.7% from earlier 0.8%. It was also below expectation of 0.9%.
Physical demand for the commodity is also expected to fall on high financing cost. Physical buyers may wait for low levels as present prices are not expected to sustain for long time on strengthening dollar.
Next week we may get better picture of U.S. economy as important data releases are in queue. We may see volatile movement in precious metals in the beginning of February.
If Mrs Jenet Yellen, new chairwoman of Fed, continues stimulus roll back then it may fall precious metals prices abruptly.