Commodities
Gold Price Falters as Diplomatic Hopes Fade
The gold price has been under pressure for three straight days, retesting the crucial $4000 support level on Wednesday.
This decline is partly due to the fading enthusiasm over diplomatic efforts replacing hostilities in the Middle East after fresh attacks by US and Saudi armies on Iraq.
The dollar has firmed up, keeping gold in a defensive position as markets await the results of the Fed's policy meeting and comments from Chairman Warsh.
The central bank is expected to keep rates steady at its July meeting, but any hint of hawkish policies could lead to further pressure on gold prices.