The failure of the Federal Reserve to launch the expected new round of quantitative easing (QE3) measures to boost the economy is the main reason for the sharp drop in gold prices.

At the same time, due to the generally poor economic conditions in various countries, commodity futures prices continue to fall, and inflation expectations are largely suppressed, making the attractiveness of gold as a safe haven relatively limited. Previously, the Federal Reserve made pessimistic expectations for the economic outlook, and crude oil prices fell to an eight-month low; China's economic data is also quite bad, which is unfavorable to the prospects of the gold market.