China surprises Dim Gold Fascination

Gold dropped more than 1% on Tuesday after China's interest rate cuts were shocked global markets helped sentiment recover from the fall of the previous day, with stocks and the US dollar was able to record rally.

Negative pressure on bullion increasingly higher after US data showed consumer confidence index hitting a 7-month in August. The results indicate if the strength of the current economy still allowing the Federal Reserve to raise interest rates this year. Expectations that the Fed has been on track to raise interest rates this year some had shrunk in recent days, following the release of the policy meeting minutes were dovish July.

Going forward, investors will also monitor the growth in demand for gold at a lower price than India ahead of the Hindu wedding season which will begin from 10 October until mid-March 2016.