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Gold prices rose today, having risen by almost 2 percent to its highest level in the past 10 days, helped by the earlier weakening of the dollar, stable prices of other commodities and the continued demand for physical metal, which podderivaet market for more than a week. Traders also received support from the central bank, after data from the International Monetary Fund showed that Russia, Kazakhstan and Turkey have continued to increase their reserves in the last month. Meanwhile, it was reported that Turkey imported 18.5 thousand tons in the first three weeks of April. But the daily outflow of exchange-traded funds showed no signs of abating, suggesting that investor confidence is unlikely to be restored soon after last week's sell-off occurred. Note that the gold reserves in the SPDR Gold Trust fell by 0.38% on Wednesday from Tuesday, its lowest level since late 2009.
Analysts also say that higher prices contributed to short-covering, which occurs when traders are forced to buy assets that they would agree to sell in the future expectations of falling prices. Meanwhile, they add that a weak dollar can help, but the historical inverse correlation between the currency and gold has been mixed in the past few days. It is also worth noting that the newly presented a positive report on the number of initial claims for unemployment insurance have raised hopes that the Fed will keep its bond-buying program by 2014, which will act in favor of gold.
Recall that earlier this month, gold has come under pressure after the European Central Bank and the IMF has asked Cyprus to sell stocks worth about 400 million euros ($ 523 million) in a deal to save what caused speculation that the other indebted euro zone countries could follow suit.
The cost of the June gold futures on COMEX today rose to 1454.00 dollars per ounce.
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