By Bhavik Patel

Every time Gold sets a new record high, there is typically a follow-up sell-off that results in a healthy correction that helps to restore equilibrium in the overbought conditions. This is also a result of shrewd money taking profits at the first signs of a correction, which causes a significant decline in prices, which continues until fair value is reached.

On domestic front, MCX gold has been dealt with heavy hand as we saw fall of as much as 5% on budget day when FM slashed the import duty from 15% to 6%. Today the downfall continued as profit booking was seen in international market where gold in COMEX breached below $2390 at the time of this writing.

Two important economic reports that will provide insight into the state of the US economy are highly anticipated by investors. Just a few days before the Federal Open Market Committee (FOMC) meets in July, these reports which are scheduled for release on Thursday and Friday will…