The cause of the gold price dropping

Today international gold prices fell 0.1% to US $ 1,791.16 per ounce. The decline has occurred three days in a row.

In international markets, gold weakened as the US dollar index stabilized near its highest level in two weeks. While investors also remain cautious ahead of the announcement of US inflation data to be released today.

If the support at US$ 1,770 holds, the possibility of further recovery still exists. An immediate drop below the same will require corrective selling," said domestic brokerage Geojit.

On the other hand, ownership of SPDR Gold Trust, the world's largest gold ETF, rose 0.2% to 1,000.21 tons on Monday. That figure rose from Friday's position of 998.17 tons.

For your information, US inflation data will be released and if the result is higher than expected. The US central bank, The Fed will begin to reduce bond purchases (tapering) in November from the previous plan in December.

The inflation data comes ahead of the Federal Reserve's main meeting on September 21-22. Gold sellers will keep a close eye on the central bank's announcement of when it will start ending its pandemic-era bond-buying program.


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