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Gold prices rose slightly, with sustained erasing earlier losses, as the prospects of monetary stimulus in Japan confront uncertainty about the prospects of "fiscal cliff" in the U.S. and published by weak data.
Spot gold prices rose by 0.10% to $ 1,696.6 an ounce after falling by almost half a percent in the previous week.
Note that, in the course of the last elections for the post of Prime Minister of Japan won Shinzo Abe, who is a proponent of aggressive monetary stimulus.
Analysts note that the increased likelihood of more aggressive monetary stimulus from the Bank of Japan may have supported the rise in gold prices in the last few hours.
Recall that the possibility of a monetary incentive encourages the growth of investment in gold as a hedge against inflation concerns.
Moreover, experts note that the scheme is more technically bearish, as the path of least resistance is now in a downward motion. After last week's worth of precious metal fell below its 100-day moving average, breaking with the strong support level of $ 1703 per ounce. Note that now gold is trading below some key moving averages, indicating the possibility of further decline.
Also today it was announced that the demand for gold in India was weak because buyers
expected rate decision from the Reserve Bank of India, which will be announced tomorrow, and could put pressure on the rupiah. Economists say that Indian gold futures are likely to fall to its lowest level since early November, as investors resorted to profit taking at the end of the year.
February futures price of gold on the COMEX is now today rose to 1696.10 dollars per ounce.
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