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Gold prices declined slightly, departing from the one-week high, which was a reaction to the comments of Russian President Vladimir Putin on the conflict in the Ukraine. However, the decline in the dollar and weak American and European data limited the losses.
Putin said he was committed to peace and does not seek to isolate Russia, urged citizens to labor mobilization against the backdrop of war, sanctions and the West and pledged to promote peace in the Ukraine.
"Geopolitics, a weak dollar and weak economic data do not give a price drop, but also to grow, it can not, because $ 1.316- $ 1,320 it is now very hard barrier that we have tested several times in the last month," - said an analyst at Societe Generale Robin Bhar .
Meanwhile, today's statistics showed that the German economy shrank in the second quarter for the first time in over a year, while France has lowered growth forecasts for this year and the next year after its economy has not grown in April-June.
As for the data on the United States, they showed new applications for unemployment benefits rose last week but remained near eight-year lows. The number of initial claims for unemployment benefits rose by 21,000 and amounted to a seasonally adjusted 311,000 in the week ended August 9, the Labor Department said Thursday. It was more than 307,000 new applications for Economists, and reached its highest level since June.
Treatment for the previous week were revised slightly to 290 000 The four-week moving average of claims, which smooths weekly volatility, rose by 2000 and reached 295,750, but is still far below the average level of applications in the past year. Report on Thursday showed that the number of people continuing to receive unemployment benefits rose by 25,000, reaching a seasonally adjusted 2.544 million in the week ended 2avgusta.
Also today it was announced that the assets of the world's largest holder of gold investment institutions ETFs SPDR Gold Trust at the end of the day on August 13 fell by 0.26 m and amounted to 795.60 tons - the lowest since June 30, 2014.
"In the absence of tangible physical demand or renewed inflows into safe-haven assets, the market will continue to be in the range until the end of the week" - said in VTB Capital.
The cost of the September futures contract for gold on COMEX today dropped to $ 1312.20 per ounce.
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