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Gold prices fell today , reaching in this six-week low , but later could still recover above the opening level . Now gold is on its way to a second consecutive weekly decline , as improving U.S. economic outlook affected the dollar strengthened and risk appetite .
The cost of the precious metal fell by about $ 100 per ounce to six-month high in the last nine trading sessions amid falling geopolitical tensions , strong U.S. economic data and the statements of the Federal Reserve Janet Yellen that interest rates may rise in the first half of 2015 . Recall that the low interest rate was an important factor in the growth of gold prices in recent years.
"Given that geopolitical tensions have subsided somewhat , and risk appetite improved after good data from the U.S. , it's all put pressure on the demand for the precious metal as a safe haven ," said analysts VTB Capital. " If the market closes today below $ 1290 , you will see some consolidation near these levels in anticipation of the ECB meeting on Thursday and the employment report in the U.S. non-farm payrolls on Friday ."
Also had little impact today's U.S. data , which showed that Americans spent more money in February as incomes rose . This is a sign that the U.S. economy may have recovered after a cold and snowy winter, observed in most parts of the country. Private consumption, which accounts for the cost of all goods and services rose to a seasonally adjusted 0.3 % last month from January . Cost of goods increased by 0.1%, while spending on services rose 0.3 %. Consumer spending accounts for about two thirds of the country's GDP . Economists had expected that the costs will rise by 0.3 % in February. The January indicator of consumer spending was revised up to 0.2 % from earlier estimate of 0.4% growth . 0.3 % growth in February was the largest monthly increase in consumer spending in November. Personal income also rose by a seasonally adjusted 0.3 % in February. Economists predicted a 0.4 % gain after a 0.3% increase in January .
Also today it was announced that the stocks in the fund SPDR Gold Trust remained unchanged on Thursday after outflows for two consecutive days.
Traders say that the physical market demand may grow , given the recent sharp drop in prices , but they remain cautious , because consumers are not aware of the direction of price movement from current levels . Prices in the world's largest consumer of gold - China remained at a discount to spot prices , indicating a lack of new demand .
The cost of the April gold futures on the COMEX today dropped to $ 1295.00 per ounce.
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