West Texas Intermediate crude fell for a third day amid speculation that the Federal Reserve may reduce stimulus and after Bank of America’s Francisco Blanch said it will be difficult for WTI to rally much more.

Prices dropped as much as 1.2 percent as investors awaited an address by Fed Bank of Chicago President Charles Evans for indications of the central bank’s policy. Dallas Fed President Richard Fisher said yesterday the bank is closer to slowing $85 billion in monthly bond buying. WTI could slide $8 to $10, Blanch, head of commodities research at Bank of America in New York, said in an interview with Tom Keene on Bloomberg Radio.

WTI for September delivery decreased $1.09, or 1 percent, to $105.47 a barrel at 10:23 a.m. on the New York Mercantile Exchange. Earlier, it gained as much as 0.7 percent. The volume of all futures traded was 7.2 percent below the 100-day average.

Brent for September settlement slid 94 cents, or 0.9 percent, to $107.76 a barrel on the London-based ICE Futures Europe exchange. Volume was 6.1 percent above 100-day average. The European benchmark grade was at a premium of $2.29 to WTI.

Crude surged 8.8 percent in July, the biggest monthly gain since August 2012, as U.S. inventories dropped and on concern that political instability in Egypt may disrupt exports from the Middle East.

Gold prices are falling, as strong economic data have made the metal less attractive as a low-risk assets, and the demand in the physical markets of India and China remains depressed.

Index PMI, reflecting activity in the services sector of the U.S. economy in July was 56.0 points compared to 52.2 points in June, shows an overview of the Institute of Supply Managers (ISM). Industrial production in the UK in June rose 1.1 percent from May and 1.2 percent - by June 2012.

Gold fell to a minimum of two weeks $ 1.282,69 Friday in the high rates of economic growth and industrial activity in the United States, but the prices have gone up after the publication of weak employment data.

Premiums in Hong Kong - the main supplier of gold in China - fell to $ 04.03 to the price in London from $ 5 two weeks ago, dealers said. Importers in India - the world's largest gold market - refrain from buying a third week in a row due to uncertain government policy on import.

Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust on Monday, fell 0.2 percent to 917.14 tons.

The cost of the October gold futures on COMEX today dropped to $ 1278.40 per ounce.

Change % Change Last

GOLD 1,300.90 -9.70 -0.74%

OIL (WTI) 106.49 -0.45 -0.42%