Gold prices fell sharply, losing what was about 1%, after previously presented strong data on the U.S. dollar strengthened. It should be noted that, despite this decline, the precious metal continued to exhibit the largest monthly gain since January 2012 - at the level of 5%, the first monthly increase since March, that, first of all, was associated with a statement from Fed Chairman Ben Bernanke that a highly accommodative monetary policy will be needed for the foreseeable future, and that any reduction in bond purchases will depend on the state of the economy.
Note that today's report from the Commerce Department showed that economic activity in the United States increased at a faster pace than expected in the second quarter. At the same time, the report also shows a significant downward revision to growth in the first quarter.
According to the report, the gross domestic product increased by 1.7 percent in the second quarter, following a revised 1.1 percent increase in the first quarter. Economists had expected GDP to grow by 1.1 percent compared with 1.8 percent growth, which have been registered in the previous quarter. Real final sales in the U.S. in Q2 rose by 1.3%. The price index for personal consumption expenditures (PCE) in the 2nd quarter unchanged. The basic price index for personal consumption expenditures (Core PCE) in the 2nd quarter +0.8%.
Meanwhile, today it was reported that employment in the private sector in the U.S. has increased more than expected in July. ADP reported that private sector employment increased by 200,000 jobs in July after an upwardly revised increase of 198,000 jobs in June. Economists had expected employment to increase by about 179,000 jobs compared to the addition of 188,000 jobs, which was originally reported in the previous month.
Note that the data presented by the strong increase the likelihood that the Fed is getting closer to reducing its incentives. Many market participants now expect the Federal Reserve, which is expected to help shed light on the possible purchase of bonds.
The cost of the August gold futures on COMEX today dropped to $ 1309.10 per ounce.
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