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Gold prices fell today as many investors prefer to stay on the sidelines ahead of a meeting of central banks in Europe and the United States. Note also that in view of the fact that China's public holiday, the demand in the physical market in China has declined.
Investors believe that the ECB will lower its interest rate, and the Committee on Open Fed will expand monetary stimulus measures, but traders say that the result of these actions is uncertain. As for the Fed, it is likely that the results of the two-day meeting will decide to continue the monthly purchases of longer-dated Treasury bonds and mortgage-backed bonds.
Note also that the drop in the value of gold contributed to the weak U.S. data, which showed that the Purchasing Managers Index (PMI) Chicago adjusted down by the end of April to the level of 49.0, up from 52.4 in March.
In addition, other data showed that the gold reserves in the SPDR Gold Trust, which is the largest gold exchange-traded fund in the world, fell on Monday by 0.22% to 1,080.64 tons, while reaching the lowest level since September 2009.
The cost of the June gold futures on COMEX today dropped to 1466.60 dollars an ounce.
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