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Gold prices declined substantially while still achieving the most minimal values for the month, which was due to speculation that physical demand will slow during the Lunar New, who this week celebrated in Asia. Also, the pressure on the precious metal have expectations of tomorrow's meeting the Board of European finance ministers, which is projected to be discussed on financial aid to Cyprus and Greece.
Meanwhile, analysts also note that, given the lack of activity on the part of the Chinese market, which is associated with the holiday, demand from other regions may have a significant downward pressure on prices, thus exposing the precious metal to sharp fluctuations.
In addition, experts say that the lack of physical demand, along with worries about Europe, and led to today's decline in the value of gold.
At the same time, if we evaluate the situation from a technical point of view, we can see the price of the precious metal fell today 200-day MA, which is a strong signal to the market. Analysts also point out that the decline today was exaggerated technical weakness, but trading volume was 33% higher than the average for the last 100 days.
February futures price of gold on COMEX today fell to 1661.60 dollars per ounce.
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