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Gold prices rose after the dollar retreated from highs against the euro. Investors' confidence in the metal began to grow after the unprecedented sales in recent days.
The weakness of the single currency put pressure on gold early in the day. Left German economic data, which were below expectations and changes in rating agency Moody's raised concerns about prospects for Europe's largest economy.
The euro / dollar exchange rate has taken a leading role in determining the direction of movement of gold, as the momentum of political statements just simply dried up.
Investors this month do not see signs that the Fed is ready to implement new measures of monetary policy, which could ignite interest in the precious metal as a hedge against inflation. Meanwhile, many traders do not rush to aggressively sell amid continuing concerns about the global economy.
Some investors buy gold and other precious metals that would protect themselves from the economic crisis in general, and especially as a protection against currency fluctuations.
Worries about the banking crisis in Europe in general, significantly affected the price of gold in recent months. Investors looking for safe assets, which was the dollar, which eventually led to an increase in its value against other currencies.
The cost of the August gold futures on the COMEX today has grown and now stands at 1577.7 dollars per ounce.
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