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Gold accelerated the decline after strong data on consumer confidence in the U.S. that caused the rise in the dollar.
As shown by the final results of studies that were presented to Thomson-Reuters and the Michigan Institute in July, American consumers feel more optimistic about the economy than had been recorded in the last month. According to the data, in July consumer sentiment index rose to a level of 85.1, compared with a final reading for June at 84.1. It is worth noting that according to the average estimates of experts, the index had only grow to the level of 84.0 from 83.9 (preliminary reading for July).
Despite today's decline, gold prices are expected to grow a third week in a row due to the weak dollar and hopes for maintaining a loose monetary policy for a long time. In three weeks, gold has risen in price by almost 10 percent, showing the best result in nearly two years as the Fed assured the markets that will reduce the incentives only when it is confident in the strength of the U.S. economy.
Stocks of the largest of these funds SPDR Gold Trust on Thursday fell 0.3 percent to 927.36 tonnes - the minimum amount for four years.
Support prices this year has a high demand in the physical market of China. Deliveries to the physical market, according to the Shanghai Gold Exchange since the beginning of the year amounted to 1.198,40 tons compared to 1,140 tons for the whole of last year.
Demand for gold in China this year will be a record 1,000 tons, which will bring it to the top in the world on this indicator instead of India, predicts the World Gold Council. Demand in India is slowing down, as the government tries to limit imports in an effort to reduce the trade deficit.
The cost of the August gold futures on COMEX today dropped to $ 1311.90 per ounce.
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