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Gold prices rose today as the rally in equity markets and the significant weakening of the dollar, which was noted for most of the trading has helped offset some of the losses suffered last week. Meanwhile, experts say that this dynamic is related to caution among investors ahead of speech Fed Chairman Ben Bernanke to Congress later this week.
Analysts said prices also provided support lowering the credit rating of the United Kingdom by the rating agency Moody `s and signs that Japan will continue to hold the ultrasoft monetary policy. Note that Moody's has downgraded the credit rating of the United Kingdom by one notch - from the highest Aaa to Aa1, the rating outlook is "stable." As it became known that one of the main reasons for the downgrade is called weak outlook for medium-term development of the economy of the United Kingdom.
Meanwhile, experts say that from a technical point of view, to talk about recovery in gold prices until early revenge, despite the current rise, so you should wait for a move above $ 1,600 or even $ 1,625.
As market participants' attention focused today on elections in Italy, where an unstable government could lead to another crisis of confidence in the single currency of the European Union.
We also add that buying at lower levels of physical gold in Asia has helped to raise prices, while a slowdown in the manufacturing sector in China in February raised concerns about the global economic recovery.
In addition, data from the International Monetary Fund showed that Russia and Turkey have increased their gold reserves in January, which was the second consecutive monthly increase, while at the same time emphasizes the interest of central banks to diversify their reserves into bullion.
February futures price of gold on COMEX today has grown, and now stands at 1587.20 dollars per ounce.
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