Gold Drops Below $1305

Gold ended the trading session lower on Wednesday, pressured by firmer stock markets after positive U.S. data and corporate earnings, but the metal was underpinned by simmering conflict in Ukraine and the Middle East.

Sluggish physical demand in Asia in the seasonally quiet summer period is also weakening support for any price rally.  Other than seasonality, the possibility of a further drop in prices due to an improving U.S. economic outlook and stronger dollar is also keeping buyers away, dealers said.

U.S. gold futures ended $1.60 lower at $1,304.70 an ounce and spot gold was last down 0.2 percent at $1,304 an ounce, after losing 0.4 percent in the previous session, pressured by firmer equities. The dollar rose 0.4 percent against a basket of major currencies.

CNBC

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