Why Gold fell

The US report in June reflects a consecutive drop in consumer demand for three continous months. This inadvertently reduces the need for gold to act as counter-inflationary tool for investors. Investors have hence taken flight and gone on to purchase government bonds initiating a technical correction for gold. There is a current lack of demand for gold from the investor side as well as consumer side. And hence causes the gold price to dip to 1180 to 1200 range. Things have also quietly settled down for Greece as well as Spain.. contributing to the exodus of investors to US debt instrument and the re-entry into stocks as well. Plus the recent "pass" status given to European banks, the sustainability of gold at the level of 1200 is in question.