Gold prices have come down with the beginning of trade on Wednesday in the global stock markets due to positive US economic data that prompted investors to reduce pumping money into purchasing the yellow metal (which is considered a safe haven in times of crisis) and head to capital and stock markets instead.
The report issued by Bloomberg Businessweek magazine, which was published on its website said that the spot prices of gold dropped by 0.4 percent in the first trading session, reaching USD 1,651 per ounce on Singapore Stock Exchange, the first to open on Wednesday.
Survey charts of the US economy performance showed an increase in consumer spending for durable goods, orders and industrial production in November with a total year-on-year growth rate of 3.1 percent in the third quarter of 2012, the report added.
The drop in gold prices is a result of reports that suggest the coming agreement between the Republican and Democratic parties to resolve the issue of the "fiscal cliff" and increase the debts that the US government can borrow from the Fed.
The report added that despite the recent decline in gold prices, they are still considered high with 5.8 percent since the beginning of the year and continue to rise for the twelfth year in a row. (end) smr.ysa.ba KUNA 261437 Dec 12NNNN