Gold dropped To Lowest Point Two Weeks "
Gold dropped to its lowest level in the last 2 weeks due to speculation that China may not need additional stimulus after inflation data reported and successful export estimates exceeded during the month of September.
Observed so far gold prices for December contract fell -0.47%, at $ 1,745.49, after reaching an intraday highs at $ 1,753.59, and the lowest level at $ 1,741.98 daily.
In addition the data uncertainty bailout Spain as well as U.S. economic data showing a rise in outside estimates also reduce the attractiveness of gold.
Most hedge funds and money managers have added to their gold positions to its highest level in 14 months, supported by gold's appeal as a hedge against inflation, amid expectations that the Fed and other central banks will keep pumping stimulus to stimulate growth.
However, data on U.S. consumer sentiment successful beyond estimation has added economic signals in the U.S. are beginning to improve, so the shrinking interest hedge against gold.
Separately, China's export data reports that more than doubled compared to expectations during the month of September also showed that the pace of the previous government's policy was sufficiently successful that additional stimulus measures may not have been too predictable.
Sources: MonexNews