The Most Bearish News For Gold Prices Yet

FRANKFURT (Sept 3)  Gold prices fell, paring a second straight monthly gain, on bets that an improving U.S. economy will support the case for the Federal Reserve to curb its stimulus. Gold prices also fell after U.K. lawmakers rejected a motion for military action against Syria, reducing demand for precious metals as a haven asset. Gold bullion climbed 6.3% in August, the second straight gain, and the longest rally since September. This rally in gold prices has been triggered by a number of supportive events.

Gold prices saw a second straight month of gains, “which is bullish from a momentum and technical perspective, especially as equities came under pressure this month,” said Mark O’Byrne, executive director at GoldCore in Dublin. “We are now entering the seasonal sweet spot for gold prices as September and November are two of gold’s strongest months as seen in the data going back to 1975,” according to O’Byrne.