The wholesale price of gold halved an early 1.5% rally lunchtime Tuesday in London, dropping back to $1,315 per ounce as world stock markets fell ahead of tomorrow's long-awaited U.S. Federal Reserve decision
For Indian households outside the major bullion centers, the gold price has now fallen below main-market prices, reports the Times of India, lagging Mumbai's futures contracts by as much as 1,000 Rupees per 10 grams – more than 3%.
Gold's earlier 4.0% jump came after Federal Reserve Chairman Ben Bernanke confirmed that the U.S. central bank will maintain its "highly accommodative monetary policy for the foreseeable future [because it] is what's needed."
After suffering a roughly 4% loss last week, gold prices headed even lower overnight and this morning as further erosion in crude oil and the euro and further advances in the US dollar made life more difficult for the few remaining bulls in the market.
Friday’s US jobs data managed to yield a lift in precious metals values this morning but the advance was itself significantly below expectations and it most certainly did not come at the expense of a notable cratering in the US dollar.