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Gold prices fluctuate, while investors are trying to understand how this precious metal will trade after rising last week.
Gold prices rose to their highest level since April last week. This happened after the Federal Reserve System (FRS) the USA has surprised investors by taking a softer than expected position at its meeting on monetary policy on Wednesday. The upsurge of violence in Iraq has also pushed gold prices to rise. Some investors use gold as a hedge against low interest rates. This metal is also in demand in terms of geopolitical tensions, as investors believe that it holds its value better than other assets.
Since the price of gold rose by 6% from the lows reached earlier this month, some investors decided to take profits, while others reflect on whether to continue the growth of prices.
"The market seems to have confused" - said Peter Hug, director of Kitco Metals. - After the reaction growth last week, traders are trying to understand whether it was the beginning of a new bull market. "
The gold market experienced the 12-year bull market that ended in 2013. This year, gold prices rose by 9.7%.
The cost of the August gold futures on the COMEX today rose to $ 1326.6 per ounce.
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