Gold weakened by oil report

Spot gold is down 0.48% to $1,427.30/oz at 9 a.m. ET.

Spot silver lost 0.84% dropping to $23.25 an ounce.

Oil is weaker after the release of a report by International Energy Agency that North American oil production will be transformative. The agency forecasted greater oil production while cutting worldwide demand. A barrel of oil dropped below $95 a barrel. Crude oil contracts in New York hit $94.72 on Tuesday.

Another drag on gold are drumbeats about a coming end to the Federal Reserve's quantitative easing program. According to a recent report on Friday by the Wall Street Journal, some Fed officials discussed how the bond-buying strategy by the Fed would be exited.

Officials caution that any action is months off. Too strong a reversal of the current QE policy could hurt stocks and the recovery.

Joe Weisenthal at Business Insider argues that reporting on the end of quantitative easing is nothing new.

The markets are beginning the day higher. The Dow Jones is at 15,131.93 up 0.27% and the S&P 500 is at 1,641.58 up 0.48%.

Canada's S&P TSX as of mid-morning is also up at 12,573.53, a gain of 0.34%.

Creative Commons image by ollesvensson