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Gold prices fell sharply today , while reaching the lowest level since May 5. Impact on the dynamics of the words of Russian President Vladimir Putin that he was ready to discuss the crisis in Ukraine. Also, market participants' attention was focused on the performance of the Federal Reserve System Janet Yellen .
It is worth noting that in the first half of the session price almost reached the level of $ 1315 per ounce on fears that the confrontation between pro-Russian separatists and government forces in Ukraine may increase. Nevertheless , the dynamics changed quickly after Putin said he would discuss the matter with the head of the Organization for Security and Cooperation in Europe .
Falling prices also continued after the statements Yellen . She noted that while the rate of inflation in the United States moves to around 2%, and the economy improves, the Fed will continue to minimize the QE program at a moderate pace . Moreover, Yellen added that the first rate increase will depend on the progress made by the Committee under its mandate.
As for the physical market, buying gold in Asia rose today as markets reopened after a public holiday in Japan , Hong Kong and South Korea, dealers said .
Chinese purchases have been moderate , as a weak currency kept from buying in large quantities. Meanwhile, the Chinese Association of gold stated that China's demand for gold bullion fell by almost 44 percent year on year in the first quarter of 2014 , while the total consumption of gold increased by 0.8 percent.
To date, the cost of the June gold futures on the COMEX fell to $ 1297.50 .
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