Gold futures dropped on Wednesday as the yellowish metal followed the downward trend of the shared currency of the European Union, Reuters reports.
So too is optimism dropping for prospects of the two-day meetings scheduled for Thursday and Friday in Brussels, where European leaders are slated to convene to discuss remedies for the sovereign debt crisis.
"Unfortunately we are in a situation when you get debate on debate (on Europe), but no real material change," analyst Daniel Brebner with Deutsche Bank told the news source. "We're in a bit of a period over the summer when we are going to see very little meaningful action by policymakers in three key regions – Europe, the U.S. and China – and I suspect we will have a continued deterioration in economic indicators. That means pressures in the gold market will continue to mount."
At 8:01 a.m. on Wednesday, gold futures dropped 0.24 percent, a $3.80 loss to $1,571.10 per troy ounce.
Bloomberg reports The China Securities Journal stated the Asian nation could be preparing to enact policies that facilitate growth in the nation hosting the globe's second-largest economy.
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