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Gold prices fell today after rising nearly 2% in the previous session, which was associated with the withdrawal of financial resources in order to precious metal investments into riskier assets like stocks. Analysts point out that from a technical point of view, prices still look vulnerable in the short term, after a huge drop to its lowest level for ten months last week and that this level can be tested this week. Recall that gold prices have risen significantly on Friday, showing the biggest gain since November, after data showed that U.S. employers increased their workforce at the slowest pace in nine months.
But metal was unable to hold its positions, as the appetite for the dollar remained high, and the appetite for assets perceived as risky, has grown significantly, while increasing expectations regarding the U.S. economy will show improvement in the long term, despite the recent series of weak economic data.
Also on the dynamics of trading influence that many market participants are awaiting publication of the latest protocols FOMC, which may help shed light on the future policy.
Also today, it was reported that stocks of precious metals among the world's major gold ETFs fell last week to the lowest since August 2012.
Meanwhile, the institutional investor George Soros said gold is no longer acts as a safe-haven asset, but, nevertheless, it is likely that the central bank will buy it to support prices.
We also add that the demand in the physical market Asia remained calm after the Chinese participants returned from a four day stay.
May futures on COMEX gold fell today, and now stands at 1570.40 dollars per ounce.
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