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Gold prices rose moderately , completely offsetting its earlier decline , as the lack of clarity about the prospects for stimulating the U.S. economy were offset by concerns about the budget negotiations. Recall that the House of Representatives voted last week to end the financing of health care reform . If the bill does not fail in the Senate , President Barack Obama has promised to veto it , after which the opposition Republicans , who control the House of Representatives are threatening not to compromise on the budget negotiations with the White House . If this happens, it is October 1, the U.S. faces the suspension of funding the federal government and the ban on raising borrowing trims allowed the Finance Ministry , which in theory could lead to a default .
It should also be noted that many sellers expect significant purchases in India, where gold import was almost stopped for two months as the government has failed to explain the new rules of imports and exports. China ranks second in the world in the consumption of gold is on the verge of a seasonal increase in demand , but the Chinese markets will be closed for the next week on the occasion of National Day.
Bidders have paid attention to the news from the IMF, according to which Russia bought 12.7 tons of gold in August , and Kazakhstan - 2.5 tons . Thus, both countries are increasing reserves of precious metals of the 11th month in a row .
Meanwhile, we add that gold had considerable support for U.S. data , which showed that new home sales rose in August by 7.9 % to a seasonally adjusted annual rate of 421,000 , recovering from a big drop in July. The increase was due to increased sales of new buildings in three of the four regions , according to official data released on Wednesday . Sales rose at the fastest pace of growth since January. Economists had expected sales to rise to 422,000 , compared with the initial estimate of sales in July of $ 394,000 . On Wednesday, the U.S. Commerce Department revised the July sales down to 390,000 . Pent-up demand and relatively low interest rates have supported sales, although there are concerns that the increase in mortgage interest rates will curb housing market recovery .
The cost of the October gold futures on COMEX today dropped to $ 1333.00 per ounce.
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