After hitting a low of $1,260 3 days ago, the gold price has rallied nearly $30 to be trading around $1,289 today and some are predicting that the rally is about to end.

Comments by US president Donald Trump over the weekend that only action and not talk will end North Korea’s nuclear ambitions helped support the precious metal but many believe the comments were an empty threat and wont amount to anything more.

The market is also now pricing a 90 percent chance that the US Federal Reserve will lift interest rates next year which will most likely see investors exiting gold for the US dollar on the back of higher yields.

"We still reiterate our view that the precious metal will likely remain under pressure over the short-term, as we see a firmer dollar, resilient equity markets, rising interest rates and slightly quieter geopolitical conditions, all combining to keep serious rallies in check," said INTL FCStone analyst Edward Meir

Tomorrows minutes meeting from the US Federal Reserve may show whether the Fed does in fact plan to lift interest rates in December and the gold price is likely to react accordingly