Gold reverses last week's rally

Gold, which recorded its biggest weekly increase in 3 months last week, started the new week with a sell-off. The ounce price of spot gold started the new week with a decline after increasing by nearly 3 percent last week. It was reported that the People's Bank of China did not add gold to its reserves in June. Thus, the bank did not purchase gold for 2 months in a row. On the other hand, according to data from India, the country's Central Bank made its biggest purchase in nearly 2 years. Oversea-Chinese Banking Corp. Currency Strategist Christopher Wong said, "There may be a slight pullback in gold after the Chinese data. However, it is not unusual for China to temporarily stop purchasing after a sharp increase in gold prices." Gold prices have been rising this year and tested the peak in May. Gold purchases by the Central Banks of India, China and Singapore to diversify their reserves supported the rise. The expectation that the Fed will cut interest rates also played a role in the decline in prices. The ounce price of spot gold fell by 0.5 percent to $2,380.80. Silver, which rose more than 7 percent last week, is also down nearly 1 percent. Gram gold is trading at 2,499 lira this morning, down 0.4 percent. Gold closed Friday at 2,512 lira. Later in the week, gold investors will closely follow Fed Chairman Jerome Powell's presentation to Congress.