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The value of gold has shown strong growth while the dollar fell the most in a month against the euro , as the vague situation around the U.S. debt limit would prevent the growth and trigger the Fed to delay reduction programs stimulate the economy .
The U.S. currency weakened against all but one of its 16 major counterparts after BlackRock and Pacific Investment Management said that the Fed will maintain its bond purchases , which put pressure on the dollar.
Gold strengthened , when the rating agency Dagong China lowered the credit rating of the U.S. government , stimulating demand for safer assets .
This week the precious metals were dominated by investor - sellers due to the weakening of the operating factors such as political struggle for the budget and the approaching debt limit in the U.S. , points strategist and director of exchange-traded products brokerage Saxo Bank Ole Slot Hansen . Several attempts to initiate growth on the controversy in Washington quickly exhausted , and in light of the problem-solving support is rapidly disappearing , creating a risk of even deeper correction. In addition to the ongoing political conflict , the players , according to experts , will focus on the U.S. Federal Reserve and the timing of when she can begin to curtail asset purchase program . In this case, bond yields may again begin to rise, and will not benefit the precious metals , particularly gold, analysts say .
The cost of the December gold futures on COMEX today rose to $ 1322.90 per ounce.
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