The growth of gold halted and turned to losses

Gold fell on Tuesday with over 1% after the reduction in interest rates in China, which calmed global markets after panic sales in the previous day. 

The yellow metal extended losses after the submitted data showing that US consumer confidence in August reached a seven-month peak. This hints that the economy is strong enough to allow raise of interest rates this year by the Federal Reserve.

The spot price ended at 1139 dollars per troy ounce.

Gold fell on Monday too and the dealers liquidated positions to cover losses in other markets caused by the collapse of the Chinese stock exchanges.

The dollar rose on Tuesday, and the knowledge that US interest rates will still be increased constrains opportunities for profits of gold. However, expectations for growth in rates in September fell last week after the publication of the Protocol by the last meeting of the Fed.