The gold price has fallen just two days after hedge funds placed bets on the price continuing to rally.
The gold price has slumped as the US economic improvement outweighed the geo political issues in Gaza and Ukraine.
Although flight MH17 caused prices to rise initially as gold safe haven demand was boosted through fear buying but once that passes the attraction of gold is reduced causing the price to drop which is good news for those who are looking to strike a good a deal.
July 30th will see the fed meet for a policy meeting and it is anticipated whether the bond buying will be further cut back.
So far since November 2013, there have been 5 straight cuts of $10 billion, this has reduced the bonding buying program to $35 billion.
Although on the upside for gold inflation is likely to lend some support and many traders see the price remaining over $1,300 for the rest of the year.