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During the day, gold futures rose, updating the six-month high amid a weaker dollar, which fell after the German Constitutional Court has recognized a constitutional fund ESM. However, certain conditions are imposed. The German Constitutional Court ruled that the German contribution to the ESM should not exceed 190 billion euros, but if the sum is greater, you will need the consent of the Bundestag lower house. Prices rose to a high of $ 1,749.50 an ounce, after the High Court ruled that Germany could ratify the European Stability Mechanism.
The weakening dollar gold become more cheaper for traders who are willing to pay in another currency. As it became known today, the dollar index fell 0.2% to 69.573.
Also, the focus of traders focused on the outcome of the two-day meeting of the U.S. Federal Reserve, which will be announced tomorrow. The price of gold is increasing as many analysts expect the U.S. central bank may take further measures to stimulate the economy.
Also worth noting is that the gold mining sector has suffered from the strike in South Africa, which brings together 15,000 workers. But in light of the fact that South Africa is only the fifth-largest producer of gold, a strike is unlikely to affect the price of gold in the short term.
However, despite a substantial increase during the session, gold could not hold its positions and dropped.
September futures price of gold on the COMEX is now 1729.6 dollars per ounce.
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