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Gold futures rose, heading for the largest weekly gain since 2011, after data showed the U.S. economy grew in the first quarter, less than forecast, which increased demand for the precious metal as a haven.
According to the report, the gross domestic product expanded in the first quarter to 2.5 percent, compared with growth of 0.4 percent in the fourth quarter of 2012. Note that according to the average estimate of economists, the economy should expand by 3.1 percent.
Meanwhile, it was reported that consumer spending continued to increase, thus speeding up the pace, and companies have increased their holdings after January 1, so it was introduced cuts in public spending.
The data also showed that consumer purchases increased 3.2 percent from 1.8 percent in the fourth quarter, which was associated with a sharp increase in fuel prices.
The government also reported that the housing sector continues to show signs of significant improvement, as housing costs rose by 12.6 percent, followed after a significant growth in the previous two quarters.
Note that Standard Chartered Plc today reported that on April 23 the physical gold sales to India have exceeded the previous record by 20 percent, and UBS AG said that on the same day, the volume of flow was at its highest level since 2008.
According to the London-based World Gold Council, some central banks are likely to take advantage of lower prices: Russia increased its reserves by 4.7 tons to 981.6 tons in March, and the reserves of Kazakhstan rose by 1.2 tonnes. According to forecasts, this year, the central bank will buy about 550 tons of gold, after increasing by 534.6 tons last year, the highest increase since 1964.
The cost of the June gold futures on COMEX today rose to 1478.00 dollars per ounce.
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