Gold price remains steady while investors wait

The gold price has remained steady as investors on both sides of the Atlantic wait for potential monetary developments today (July 30th) and later on in the week.

Spot gold dropped by just 0.1 per cent to $1,620.91 per ounce, after a 2.5 per cent gain last week - its biggest increase in almost two months reports Reuters.

Eurozone business climate reports will have some bearing on the price, but most traders are waiting for announcements from the Federal Reserve policy meeting to be held this week.

Last Friday's US economic data revealed that consumers spent at their lowest rate in a year during the second quarter and there is pressure on the Federal Reserve to bolster the country's recovery. 

Further quantitative easing would raise inflation and many investors could see gold as a hedge against the rising prices.

But some analysts expect the Fed to continue with the current policy, which has not sent the country's economy suffer significantly enough for major intervention.