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Gold futures retreated from a seven-week low, which was due to a significant increase in demand for bullion buyers in India, which is the largest importer of gold in the world, while other investors started to buy due to the rather low prices.
Most actively traded contract, for December delivery recently gained $ 14.50, or 0.9%, to $ 1,716.10 per troy ounce.
Earlier, the price of gold fell to its lowest level in seven weeks, as investors feared that the accompanying statement, the Federal Open Market Committee, the Fed will hint to change the program to stimulate the economy.
Instead, the central bank said the continuation of the non-standard measures to support the economy, as well as holding interest rates near zero until mid-2015.
Some investors are bearish on gold, returned to the market as buyers to close their positions and lock in profits.
The falling price of gold also lured jewelers from India, which entered the market as buyers. Demand for gold in India has been under pressure from record high domestic prices and the depreciation of the Indian rupee against the dollar. Since gold is traded in dollars, it becomes more expensive for buyers using other currencies, the rate of which is weakening the dollar.
Note that the demand for gold is now almost two times higher compared with sales in July and August, but at the same time it is lower compared to the previous year.
Recall that the Indian buyers are crucial to the world gold market, since they are the second largest segment of demand after China, which is the largest producer and consumer of gold in the world.
November futures price of gold on COMEX today rose by $12.7 and now is $1713.30 an ounce.
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