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Gold prices fell sharply today, as many market participants are waiting for G-7 conference, which will take place this weekend, and on the background of the inevitable growth rates against the Japanese yen, marked yesterday.
Note that gold fell more than 2 percent, reaching a two-week low at the same time, and is now to its highest one-day drop since mid-April, as the breach of key levels prompted active sales of U.S. futures, which are under pressure from a stronger dollar and rising the stock market.
According to traders, triggering stops helped to overcome the key level of support at $ 1,445 and $ 1,440 per ounce, which caused a sharp move down to session lows at $ 1,419.50 an ounce.
We add that the growing optimism about the recovery of the U.S. economy has also led to an increase in the attractiveness of assets, such as gold, and questioned the amount of quantitative easing by the Federal Reserve System.
In addition, Deutsche Bank today announced the lowering of its forecast for gold to $ 1,533 an ounce this year, from $ 1,637 per ounce to $ 1,500 an ounce in 2014 from $ 1,810.
Note the data presented today showed that inventories in the SPDR Gold Trust increased by 2.7 tons, the first time since March 19. Since the beginning of this quarter inventories decreased by 167.1 tons.
The cost of the June gold futures on COMEX today dropped to 1424.20 dollars an ounce.
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