On Wednesday futures on gold dropped due to the US dollar growth against the euro owing to concerns over the crisis driven by the eurozone sovereign debt.
By the end of COMEX trades August futures on gold fell by USD 5.30 (0.3%) down to USD 1538.70 per ounce.
July futures on silver dropped by 1.2% down to USD 36.630 per ounce.
The pressure on the euro has been causing problems for the debt of periphery countries, Greece first of all. On Wednesday the representatives of this country confirmed the information that Greece will lose its access to financial markets next year, as recession will be deeper and longer than it was earlier forecasted.
Such data pushed the US dollar up higher, which drove gold down. Gold thus became more expensive for holders of other currencies.
Investors often buy gold under the conditions of uncertain economic situation, but strengthening American currency led to lower futures quotations. Last time demand for gold has been increased amid concerns over slowing US economy after publications of some important macroeconomic data which turned out to be rather disappointing.
On Tuesday evening Federal Reserve System Chairman Ben Bernanke said that the US economy is to gain strength in the second part of the year. Yet he confirmed that the growth is rather unstable and frustrating for the unemployed.
Investors have been hoping for the Federal Reserve System to implement a new programme of economic stimulation as this month 600-billion QE2 programme will come to its close. It has been underpinning the US economy.
If QE3 is approved, gold will be supported because concerns over inflation growth will exacerbate due to weakening US dollar which will raise the raw material prices.
