After touching the highest in 4-1/2 months on Monday at $1676.95 amid expectations of further easing from the Feds, the precious metal dropped below the $1660.00 on Tuesday after rebounding from the strong resistance found around the $1675.00 levels. Gold is trading as of this writing around the $1660.20 per ounce after dropping from the highest of $1666.31 per ounce and the opening of $1663.81, while the lowest is seen at $1657.30 per ounce. Caution is mounting ahead of the Fed’s annual symposium in Jackson Hole, Wyoming, on August 31 and September 1, during which central bankers and finance ministers from around the world are scheduled to meet. And as the Federal Reserve Chairman Ben Bernanke is no longer expected to suggest during the symposium a third round of quantitative easing, demand on the safe haven dollar increased, adding to the downside pressures on gold prices. The Dollar Index is trading as of this writing around the 81.70 yet it touched today the highest of 81.82, which added to the downside pressures on silver as well which fell today to the lowest $30.52 and as of this writing is trading around the $30.65 levels. Markets are expected to be volatile ahead of the central bankers' meeting this week, especially amid hopes that Bernanke and the European Central Bank chief Mario Draghi will shed light on possible measures to boost their sluggish economies. Meanwhile the technical analysis shows that after touching the strong resistance found around the $1675.00 levels but without the ability to close above it on the intraday basis, gold was pushed below the $1660.00, and may drop to $1643.00 levels. Economic data worth following on Tuesday include Germany’s GfK consumer confidence for September, as well as the S&P/CS home prices the consumer confidence from the United States which is expected to improve in August.

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