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Gold prices increased significantly today, while reaching a high of $ 1,200 an ounce, which was associated with the correction of the dollar the United States after a significant increase on Friday. Recall, better-than-expected employment data in the United States, published on Friday, the dollar strengthened and raised expectations about what the Federal Reserve System United States may raise interest rates, which will worsen the prospects for gold.
Traders said the growing demand in China is not happening. Recall Chinese markets will be closed due to a national holiday until Wednesday. Markets in Singapore, which are key trading center for gold in South-East Asia is also closed for the holiday. It is possible that a protest in Hong Kong led to a reduction in purchases of jewelry in the rest of China.
"Everyone's attention is largely drawn to the stock market than the gold market", "- said one of the traders in Shanghai on the market of precious metals. - "I believe that demand will grow only around the end of the year."
In India, the world's second largest consumer of gold, the demand on the eve of Diwali is growing moderately. This festival this year will be celebrated on 23 October. Normally a time of purchase of gold in India are the most active. At the same time, the weakening rupee negates the decrease in the international price of gold, and prices in India have hardly changed. India imports almost all of the gold consumed, and fluctuations in foreign currency exchange rates significantly affect the price of gold in the Indian market. Premiums for gold, recorded in the price of the metal in India, in addition to international prices, in the last two weeks have doubled to about $ 15 an ounce, reflecting the growth in demand. At the same time, the premium by about a quarter below the levels seen earlier this year.
Meanwhile, we add that, according to the Commission on the Commodity Futures Trading on Friday speculators cut their bullish bets for futures and options on gold to its lowest level since early January, and recorded on the 7th weekly fall.
The cost of the December gold futures on the COMEX today rose to 1201.00 dollars per ounce.
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