Gold slips for seventh successive day

<p>The gold price appears to be heading downwards once again.</p>

The price of gold looks to be heading lower for the seventh day in a row, while European stocks have also inched downwards in morning trading today (May 17th).

After slumping to a two-year low mid-way through April, the precious metal had moved higher but now appears to be enduring a long-term weakness once more, dropping by 0.66 per cent to $1,376 per ounce this morning.

Analysts have suggested this has come as a result of a strengthening in the US dollar, as the two markets often correlate, caused by investors recycling cash to purchase equities.

The greenback moved higher after a US Federal Reserve official suggested the central bank may look to reduce its asset-purchasing programme in the coming months.

John Williams, president of the Federal Reserve Bank of San Francisco, said the recent reduction in the country's unemployment rate indicates the economy is improving steadily. He suggested the scaling back process could begin next month and be completed before the end of the year

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