Gold is awaiting direction from the international markets, especially the news of QE3 tapering. The US Federal Reserve is likely to meet on December 17 and December 18, wherein it would decide whether it should consider tapering its QE3 programme.

If the Federal Reserve would to marginally taper its QE3 programme, it could have an impact on gold prices. Gold would likely drop lower.

Gold has received tremendous support from the Fed's QE3 and rallied substantially in the last few years. However, this year the metal has fallen as investors chase equities rather then gold.

In fact, gold is headed for its first drop in 12 years. International gold prices have dropped almost a fifth of their value this year.

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