Following the Wednesday release of minutes from last month's meeting of the body, the value of the U.S. dollar gained. The world's reserve currency and the yellowish metal typically perform the inverse of one-another thus the dollar strengthens when a third round of quantitative easing is forecast.
"The market can pretend that QE3 isn't important, but it is one of the fundamental factors that is supporting gold prices," head commodities analyst Nic Brown with Natixis told Reuters. "It is a case that any hints, any clues that are coming out of the Fed over when they might do it, whether they might do it are absolutely central to gold prices."
At 9:37 a.m. on Thursday, gold futures fell 1.2 percent, an $18.90 drop to $1,556.80 per troy ounce.
Canadian Fund Manager Eric Sprott told Bloomberg earlier this week that the yellowish metal will push past the record price of $1,923.70 per troy ounce by the end of this year because of massive amounts of global debt.
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