"Capital is going to where it's safe, and it hasn't been safe in gold," Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. "Currency markets tend to rule in commodities, and right now the (US) dollar is king."
Gold futures for June delivery slid 0.6 per cent to settle at $US1594.20 an ounce on the Comex in New York. Earlier, the metal touched $US1578.50, the lowest since Jan. 3.
Gold is trending downwards, and I do not think this time QE3 will have the same impact as previous. Speculative investing appears to be on the nose. I say this because the investors I deal with want guaranteed returns in lower risk assets.
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