Despite posting some early gains, gold flattened out amidst indications that the Fed would not act on further stimulus unless the U.S. economic recovery slowed down even more. Details from the Federal Open Market Committee (FOMC), revealed Wednesday, showed a split in the decision for further stimulus action.
Spot gold rose 0.1 percent to $1,568.64 per ounce. U.S. COMEX gold futures for August slipped down to $1,575.40 per ounce, and trading volume stayed around 20 percent below the 30-day average.
Gold has consistently dropped in the past four sessions as the markets react to the sustained economic slowdowns worldwide as well as government inaction.
“The long-term, upward-sloping trend line in gold’s favor is in jeopardy of being broken,” said Dennis Gartman, a veteran trader and publisher of the daily Gartman Letter.
Germany has yet to approve the Eurozone’s proposed bailout program, and the market is holding its breath, limiting gold gains.
Although some 30 billion euros has been marked for aid to Spain, European leaders have been unable to fix a specific value.
The biggest gold exchange-traded product (ETP), SPDR Gold Trust, lost 333,500 ounces over the last three weeks. Many of the world’s ETP gold holdings were at their lowest since the middle of June by the end of Tuesday.