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The price of gold fell sharply today, it is moving to its biggest weekly decline in two months. But, despite this, the precious metal is still within the 11-month high, and market participants are awaiting the decision of Spain concerning financial assistance.
Recall also that the international rating agency Standard & Poor's downgraded Spain's sovereign debt rating by two notches to BBB + to the level of BBB-.
During the session, gold, which is seen as a hedge against inflation, increased slightly, as investors reacted to the U.S. data on the growth of producer prices in September. But soon the prices returned to their previous level and are now on the way to the largest weekly decline of 0.8%.
Further decline may continue as the market lacks momentum after the introduction of monetary policy adopted by the major central banks, and should support prices in the long term.
At the same time, a recent survey conducted by analysts Reuters, found that the outlook for gold remains upward.
Credit Suisse announced the increase of the average price forecast for 2013 for bullion to $ 1840 per ounce to $ 1720 an ounce. The bank also revised its forecast for silver to $ 33.10 from $ 29.20 per ounce.
Note also that the gold stock ETFs also fell on Thursday for the first time in two weeks, but still close to a record high at around 75.03 million ounces.
October futures price of gold on the COMEX fell $ 07.06 today and now is 1762.1 dollars per ounce.
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