Gold prices 8216 to stay in flux 8217

Gold prices are going to remain "in flux" for the foreseeable future as global markets await the Federal Reserve's announcement of a cut to its quantitative easing programme.

Analysts believe the next few weeks could continue to be rocky for the precious metal, which has lost 27 per cent of its value since March.

Edmund Moy, chief strategist with gold-backed IRA provider Morgan Gold, explained that gold is holding its own at the present time.

"Look for gold prices to be in flux until the Fed, perhaps at their December meeting, gives clearer signals about when they start tapering," Mr Moy told CNBC.

Kelly Teoh, market strategist at IG Markets in Singapore, added that he does not expect the Fed to scale back its quantitative easing programme in December.

She said: "Fed members will always convey the message that they would like to taper but it's a different matter when it comes to pulling the trigger."

The falling value of gold has had a major impact on pawnbrokers such as Albemarle and Gold, which today (December 9th) announced a massive drop in its profits.

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