Gold price drops but maintains record high level

Price of gold dropped on the international markets on Tuesday although it stood at USD 1,336 per ounce, retaining the highest level in three weeks. Traders are currently anticipating crucial economic reports by the US Federal Reserve on quantitative easing -- that is when central banks pump money into the economy directly in a bid to raise activity -- said the economic expert, Rajab Hamed, in remarks to KUNA on Tuesday. Recent rise of the gold rates is attributed to noticeable demand in Asian markets and fall of the US dollar rate, however this has remained insufficient to push the price above the USD 1,340 per ounce level, thus maintaining it for the fourth consecutive week, Hamed added. Trading data have shown demand rise by China, the world second gold consumer after India, "and this is the top key cause for maintaining the price of the yellow metal in the past month." he clarified. Gold prices soared, in the end of the past month and start of August, by USD 100 per ounce, a record hike following drastic fall of the yellow metal price early this year.