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Gold prices rose slightly today as the dollar lost some of their positions . However, the precious metal remains under pressure on talk that the European Central Bank may ease monetary policy , as well as renewed speculation that the Federal Reserve may curtail monetary stimulus at the end of this year.
We add that the euro earlier reached a six-week low against the dollar as investors sold the single currency on speculation that the ECB may loosen policy in the near future , but was able to regain lost ground after data showed that the manufacturing sector continued to expand in October. The final report from Markit Economics showed manufacturing purchasing managers' index rose to 51.3 in October from 51.1 in September. The October result coincided with the preliminary estimates and forecasts of experts. Despite the modest rate of growth in general , increasing the active signals received from all but two countries in the study . Manufacturing output and new orders rose a fourth straight month in October. At the same time , employment declined twenty-first consecutive month of job cuts mainly reflects subdued demand growth and care costs.
It should also be noted that the outflow of gold from exchange-traded funds resumed on Friday . In the SPDR Gold Shares stated that stocks fell by 5.7 million tons , registering with the biggest one-day loss since October 21. The recent drop in stocks indicates that investors are willing to reduce their holdings in gold in favor of other asset classes. In recent years, more investment is directed to the U.S. stock markets , which put one record after another , and seems to be universally accepted , as opposed to gold.
We add that the sharp drop in prices last week has failed to revive the physical demand , some dealers say that the price may drop even below $ 1,300 to attract more buyers.
The cost of the December gold futures on COMEX today rose to $ 1318.60 per ounce.
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