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Gold rose on Friday in anticipation of statements by the U.S. central bank , but the week promises to be the worst since November due to market reaction to the Fed's promise to head Janet Yellen to raise rates in the first half of 2015 .
The Fed is likely to complete its bond-buying program this fall and begin to raise interest rates after about 6 months after that , Yellen said . Although she carefully introduced this forecast , making numerous reservations , this was still enough to bother investors. Some market participants are buying gold and other precious metals as a tool for protection against low interest rates, inflation and uncertainty in the economy.
" Coming rising interest rates , a stronger dollar , and inflation is not observed , - said James Cordier , director of Liberty Trading Group. - All the factors to reduce the price of gold ."
Bond buying program , the volume of which is now $ 55 billion a month, helped keep rates low at the same time putting pressure on the dollar.
Gold prices jumped to a 6 - month high of 1,392.60 dollars on March 17 as a result of growth , partly provoked instability in Ukraine and Russian military intervention in the Republic of Crimea.
However, prices fell this week, as it became apparent that the West is almost inclined to interfere with Russia to join the Crimea. Russian President Vladimir Putin on Tuesday signed an agreement on accession of the Ukrainian region of the territory of Russia . He said that his country is not seeking to " separation of Ukraine" and will protect the interests of the Russian-speaking population in the country " diplomatic and legal means ."
The cost of the April gold futures on the COMEX today rose to $ 1343.00 per ounce.
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