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Today, during the day, gold prices have stabilized a bit, erasing earlier losses, as concerns about peripheral eurozone economies caused a sharp depreciation of the euro, while increasing the attractiveness of the dollar. But in the last couple of hours in the gold price fell sharply, updating the minimum of the month.
Euro fell sharply after the meeting of ministers of the euro area ministers, which was held on Monday amid investor dashed hopes for the salvation of the problem of the Spanish economy.
News from Greece showed that international lenders may give Athens more time to meet its budget deficit reduction, which caused the increase in the dollar index to two-week low. And as a stronger dollar makes gold is usually less accessible to non-US investors, prices have declined slightly.
According to analysts, the price of gold will continue to rise due to recent actions of the central banks, which are aimed at easing monetary policy, including the Federal Reserve, which has announced its plan to buy bonds, which should provide long-term support for gold prices.
Economists also say that the strengthening of the dollar stalled uptrend for gold, but it is very temporary, after which the cost of precious metals should increase substantially.
Note also that the price of gold has risen more than 13 percent this year, largely due to the efforts of leading central banks.
Also today, the central bank in China, which is the second-largest gold buyer made his second-largest gross cash injection in the domestic money market, thus increasing the bag at 265 billion yuan ($ 42.15 billion).
At the same time, the International Monetary Fund cut its outlook for global growth in 2012 to 3.3% from 3.5%, and warned the U.S. and European politicians that the inability to solve their economic problems could cause an even greater decline.
Reflecting continued investor demand for gold in the background of deteriorating economic conditions, on Monday was recorded yet another influx of metal commodities at 74.76 million ounces.
October futures price of gold on COMEX has fallen today to 8.7$ and is now 1764.8 dollars per ounce.
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