Gold price has also been negatively impacted by the likely absence of QE3

Over the past month, financial markets have come under heavy selling pressure as investors remain skeptical that the Federal Reserve will launch a third round of quantitative easing (QE3) in the near future. While equities and cyclical commodities have bared the brunt of the selling, the gold price has also been negatively impacted by the likely absence of QE3.

Along with the lack of additional money printing by the Fed, economic data in the U.S. has noticeably deteriorated in recent weeks. This trend was most evident in the May non-farm payrolls report, which came in far below expectations.

Gold support is at $1,509 and $1,499. Resistance is at $1,531 and $1,543.