Gold drops on US data speculation

<p>Gold is down for the second day in a row in London.</p>

The price of gold is down for the second day in a row in London today (January 8th).

Speculation is rising that US data will strengthen the dollar later in the week and this affected the value of the precious metal, which performed poorly over the course of 2013.

David Govett, head of precious metals at Marex Spectron Group in London, wrote in a report that there was a "lack of physical demand and prices have slipped back".

He explained that the impending release of US data "will deter buyers from the market for the time being as both are expected to be dollar-positive".

Earlier in the week, Swiss National Bank announced that it made a loss in 2013 as a result of the falling price of gold, which slipped by around 30 per cent last year.

A statement from the SNB said that the bank cannot make a profit distribution as a result of the loss of CHF 9 billion (£6.04 billion) for the 2013 financial year.

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