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Gold prices fell markedly, having lost almost all positions earned at the end of last week, which is associated with a weak investment demand and a stronger dollar. Experts note that trading volumes are expected to remain lowered this week in connection with the celebration of the New Year.
The growth of the American currency to help the GDP data, which showed that US gross domestic product grew in the third quarter by 5.0% after rising 3.9% in the three months to June. This report further strengthened optimism about the strength of the US economic recovery and emphasized expectations that the Fed will raise interest rates next year. High interest rates to stimulate the US national currency and putting pressure on gold, has received support from the central bank liquidity and low interest rates after the 2008 financial crisis.
On the dynamics of trade is also affected by news of Greece. Today, the Greek Parliament for the third time in a row failed to elect a president. This will automatically lead to early parliamentary elections, the date of which the Prime Minister Samaras has already appointed on January 25. Recent polls show that the opposition party Syriza, which opposes austerity measures, still a little lead. However, the situation is very unstable, and there is talk that the New Democracy party may replace Samaras as prime minister, which can increase the chances of winning the ruling coalition. Political problems will become an obstacle to negotiations with the Troika, which can seriously affect the situation in the country by the end of March.
Meanwhile, data showed the world's largest reserves of the gold-traded exchange-traded fund SPDR Gold Trust on Friday fell by 0.08 per cent to six-year low 712.30 tons.
The cost of the February gold futures on the COMEX today fell $ 5.14 to 1180.20 dollars per ounce.
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