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Today, gold is once again continued its upward movement, after yesterday's rapid growth. This was due to the fact that the head of the European Central Bank, Mario Draghi said that politicians will do whatever is necessary to maintain the euro and amid growing expectations of further U.S. economic stimulus. Gold prices rose to a three-week high above $ 1620 per ounce.
Futures on the precious metals continued to rise on the achievements of the previous session, which showed the largest one-day increase since the end of June, as weak U.S. data renewed talk of another round of quantitative easing.
Many analysts predict that if the Fed would embark on quantitative easing program, it will lead to a weakening dollar, and the fact that market participants will again look to gold as a safe asset.
Further monetary stimulus will also continue to put pressure on long-term interest rates, while maintaining the possibility of reducing the price of gold to the lowest values. Significantly price movement may begin after the data will be presented in terms of U.S. GDP for the second quarter. It is expected that growth will be 1.1%. But if the growth rate will be below expectations, the Fed may resort to an additional stimulus in the coming weeks and months that will affect the value of precious metals.
The increase in gold prices caused a small sales in the physical gold market in Asia, but market participants are worried that prices will lose momentum as political uncertainty remains in the spotlight.
The cost of the August gold futures on the COMEX today has grown to a value of $ 1621.5, and then slightly decreased and now stands at 1616.0 dollars per ounce.
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