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Gold prices rose sharply , reaching at this three-month high , as investors heard that the new head of the U.S. Federal Reserve will continue the previous policy , which was held by Bernanke.
Fed Chairman Janet Yellen , speaking in the U.S. Congress with the semi-annual report on monetary policy , said that the situation on the labor market improved, but the economy still has a long recovery process.
It supported the current political course FOMC and suggested that the Fed will continue at a moderate pace gradually curtail asset purchase program QE. She also noted that the achievement of targets will not mean automatic increase the federal funds rate . Rather, such progress would be to encourage the Central Bank to analyze the economic situation in order to determine at what stage the rate increase is justified.
Yellen said that he sees " significant risks to the U.S. economic outlook " by the tension in the emerging markets , and did not consider politics QE factor that contributes to the formation of bubbles in the stock market , saying that the share price has risen from the average historical values only slightly .
Higher prices also helped that the dollar fell to its lowest level in almost two weeks against the euro and a basket of major currencies.
"Strengthening the prices should be seen as an opportunity to sell ," - said the head of commodity markets analyst Societe Generale Asia Mark Keenan .
We also learned that the mark-up on gold 99.99 fine on the Shanghai Gold Exchange fell to $ 7 per ounce to the spot price at $ 12 on Monday, as demand declined as prices rise .
In addition , we add that the Ministry of Commerce of India recommends to ease restrictions on imports of gold after 77 - percent drop in imports in January . Recall that India has imposed restrictions in the past year , including a record-breaking 10 - percent import duty to reduce the trade deficit .
Assets of the world's largest holder of gold investment institutions ETFs SPDR Gold Trust remained unchanged - at the level of 797.05 tons.
The cost of the April gold futures on the COMEX today rose to $ 1288.70 per ounce for ounce.
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