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Gold prices rose on a background of information that central banks may begin to conduct incentives for maintaining the growth of the economy. Also, a substantial increase in the cost of precious metal influenced by published data from the U.S., which have been mixed and unexpected.
Market participants are now awaiting the meeting of central bankers in Jackson Hole, which is to be held at the end of the month, and shed more light on the possible prospects of quantitative easing, which should ultimately affect the value of gold.
U.S. stock indexes also rose at the opening, while Treasury yields fell from the level of a three-month high as investors weighed the likelihood that the Fed will launch a new program of bond purchases in the next month.
Top-than-expected inflation data reassured investors that the price pressure will not prevent the Fed during the quantitative easing.
Also today, the World Gold Council said that the world demand for gold in the 2nd quarter fell 7% to its lowest level since the first quarter of 2010 as well as a reduction in investment demand, jewelry and industrial sectors has been more pronounced than with purchases of the metal by central banks.
The cost of the August gold futures on the COMEX today reached a low of 1614.6 dollars per ounce, then rose rapidly and is now trading at around 1600.2 dollars per ounce.
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