Gold price keeps falling

Gold price continued to go lower Tuesday, falling to a nearly four-month low ( 1265 $ ) as strength in the U.S. dollar and stock market.

February gold dropped 0,9% to a 4 month low 1266.30 an ounce. If gold price settless around this level, this will be the lowest price since August 8, according to FactSet data.

“Sentiment is bearish for gold,” said Chintan Karnani, chief market analyst at Insignia Consultants, noting that he expects to see a technical breakdown if futures prices trade below the $1,269 level.

“The rise in U.S. trade deficit numbers tells us of the strength of the U.S. economy till the first quarter of next year,” he said. “A strong U.S. economy will prevent sharp gains for gold.”