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Gold Falls.
Gold fell to $627 on Wednesday as a robust dollar underlined the growing belief that US interest rates will rise again later this month, tarnishing the precious metals's role as a hedge against a fall in the US currency. The dollar was hovering near Tuesday's one-month highs against the yen and six day peaks versus the euro.
Monetary policy as enunciated by Ben Bernanke, Fed Chairman, earlier this week is turning progressively against the precious metals. In the last two days, three central bank chiefs have alo smade statements concerning the need to monitor tackle inflationary pressures.
Current technical support is at $620. A break below would trigger a retreat to the $575 level according to analysts.
