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Gold traded near a two-week low, which was caused by good inflation data from China and a slight depreciation of the dollar, because there is still uncertainty about interest rates in the United States. Economists polled by Reuters said that there is a 70% probability that the Fed will begin to conduct another round of quantitative easing, or buying government bonds to lower borrowing costs. Gold has lost about 1% last week under the pressure of constant weakness of the euro against the backdrop of the continuing debt crisis.
Gold rose after the Chinese data showed that inflation expectations have increased in July, signaling the prospects of the response by the central bank to prevent a recession.
Last week, the People's Bank of China unexpectedly lowered the benchmark interest rate, which was the second month, thus creating more favorable conditions for investments in gold.
Data from the Commodity Futures Trading Commission last week showed that speculators reduced their stocks of gold futures on the largest number in the last three months.
August gold futures on the COMEX today has grown today to 1589.9 dollars per ounce.
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