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During the day, the price of gold showed a significant increase, due to the growth in the stock markets and an increase in appetite for riskier assets, but prices have dropped after the published data from the U.S. showed that the number of initial claims for unemployment insurance declined.
At the same time, many investors are now awaiting data on employment in the non-agricultural sector of the U.S., which will be presented tomorrow.
Analysts predict that the economy added 125,000 jobs last month and the unemployment rate rose to 7.9% from 7.8%.
Note that the U.S. stock indexes rose at the open, while European shares were supported by a report from the Royal Dutch Shell (RDSa.L).
Also today, the rise in gold prices was caused by the data from China, which showed that the PMI index of manufacturing activity rose to 50.2 from 49.8 in September, indicating expansion in the sector.
Technical analysis showed that the spot price of gold may rise in the near future to reach $ 1736 an ounce, as evidenced by the analysis of the channel and Fibonacci analysis.
Also note that support is now at $ 1693 and $ 1661.
The physical market traders in India have taken a wait and expect further price correction to buy. Rates to rise in prices due to the fact that Indian demand will grow this month amid the peak festival season.
Note also that the Russian gold mining companies, gold production increased by 3.1% in the first nine months of 2012 compared to the same period last year.
December futures price of gold on COMEX today rose to 1717.80 dollars per ounce.
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