Gold continued dropping yesterday, passing the support level at 1660-1655, being dropped to 1645 dollars an ounce. The dollar's drop could have managed to support the metal price and subsequently the price hiked to 1665 dollars an ounce.
The IAFT analysts believe, that the previous growth of the gold quotes was more emotional than backed up by some real reasons. In other words, speculators were extremely responsive to Bernanke's speech, who actually gave the real prerequisites to carry out the third round of quantitative easing from the part of the FRS.
Along with this fact, it is wise to note a very weak physical demand of gold from China and especially India, which traditionally appears to be the the precious metal consumer. Therefore, it is doubtful that gold will develop a substantial recovery. And since, there are no real prerequisites to carry out QE3 from the part of the FRS, the precious metal will remain under pressure.