FX & CFD trading involves significant risk
Gold prices rose slightly today, retreating further from the four-week low, as investors took advantage of lower prices to buy. Growth of quotations is also linked to the downturn in most Asian stock markets.
"After a significant decline this week someone buys a depreciating gold, but the general mood is pessimistic," - said a trader at precious metals.
Meanwhile, markets were cautious, since Wednesday, the U.S. and the European Union announced a new package of sanctions against Russia after the annexation of the Crimea in April and continuing tension in the rest of Ukraine. U.S. sanctions have become the biggest at the moment. In response to the sanctions, Russian President Vladimir Putin said that relations with the U.S. are at risk to go to the "dead end" and could harm the business interests of the country in Russia.
The dynamics also influenced today published U.S. data, which showed that the construction of homes fell 9.3% in June, becoming the surprising sign of weakness for the sector, which is struggling to keep up the momentum in the last year. Housing starts fell last month to a seasonally adjusted annual rate of 893,000, the weakest level since September 2013, said the Ministry of Commerce. It was the second consecutive month of falling, and it was due to a decline in the south by almost 30%. Other parts of the country have noted an increase. Despite today's report, several recent signs indicate that the housing market is regaining its footing.
Pressure on prices continue to word Fed chief Janet Yellen, who said that the central bank may raise interest rates sooner or faster than expected, if continued growth of employment and wages in the United States. Growth rates will cause an outflow of investors from the gold market that is profitable percent.
Also today it was announced that the world's largest reserves secured gold exchange-traded fund SPDR Gold Trust on Wednesday fell by 2.7 tons to 806.03 tons, indicating the weakening of investment demand.
From a technical point of view, immediate resistance is at $ 1310. In the case of falling prices, and overcome the mark of $ 1,300, $ level support will in 1285.
The cost of the August gold futures on the COMEX today rose to $ 1303.10 per ounce.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.