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The price of gold has grown considerably, returning with almost all previously lost ground since yesterday's upbeat economic reports the United States continues to support demand for the American currency, but the tension between Russia and Ukraine has forced investors to seek safe-haven assets.
Experts point out that the United States GDP data showed accelerated growth of the economy. In addition, the number of applications for unemployment benefits was lower than analysts had forecast. This statistic has supported the American dollar, which has a negative impact on the dynamics of gold
We also recall that yesterday the president of Ukraine Petro Poroshenko on Thursday accused Russia of supporting separatists counteroffensive in the south-east of the country; the leaders of Germany, Britain, France and Italy after NATO also called Russia guilty of escalating military conflict and threatened new sanctions.
"If prices rise above $ 1,300, will begin selling. Need to monitor the situation in Ukraine. The mood in the gold market is not very optimistic, forward to the increase in interest rates, "- said a senior dealer at Lee Cheong Gold Dealers in Hong Kong Ronald Leung.
Market participants are also watching the situation in the eurozone. Today's report showed: inflation in the euro zone in August, as expected, has slowed amid falling energy prices. Inflation fell to 0.3 percent from 0.4 percent in July. The result coincided with economists' expectations. Inflation has moved further down on the target level of the European Central Bank "below but close to 2 percent." Meanwhile, core inflation, which excludes prices of energy, food, alcohol and tobacco, rose slightly by 0.9 percent in August from 0.8 percent in July.
We also add that the probability of reducing the price of gold will continue in the coming months due to low demand in the physical market of China. Delivery of gold from Hong Kong to China in July fell to a three-year minimum 22,107 tons with 40,543 tons in June. Margins on gold bars in Hong Kong rose to $ 0,80- $ 1.10 per ounce to the price in London. Margins in Singapore held at $ 0,80- $ 1.00 to London prices, and the price in Tokyo is the same as London.
Experts point out that today and in the coming days, the price of gold will be limited to the level of support $ 1,285.0 an ounce resistance level $ 1300.0 per ounce.
The cost of the October gold futures on the COMEX to date is $ 1288.30 per ounce.
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