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Gold prices fell markedly today, which was due to the strengthening of the dollar and the news that the Indian federal government raised import duties on petroleum products, gold bars for the third time in the last eight months to 10% from 8%, and for silver to 10 % to 6%.
We also add that earlier gold managed to reduce some of the losses after a report on U.S. retail sales was below consensus expectations, but after the event has faded into the background, prices continued to decline.
It should be noted that the published data showed that consumer spending in the U.S. rose slightly in July, a sign that the economy remains weak after the spring period. In the U.S. Commerce Department reported that retail sales and food sales in July rose 0.2% from 0.6% in June, because of the slowing car purchases, furniture and electronics. Economists had forecast a sales increase of 0.3% compared to the previous month.
Add that to an annual basis, retail sales rose by 5.4%, as consumers increased spending on food, clothing and sporting goods. Sales rose at the fastest pace in more than a year. Excluding auto sales, total sales rose in July by 0.5% on a monthly basis. But the slow growth in total sales shows that households are still constrained by high unemployment, high taxes, which came into force in January
Traders also report that the current dynamics of the gold market is related to the low volume of trading, which is inherent in the summer holidays. Note that many market participants are focused on economic data from the U.S., as they can help to assess the possible actions of the Federal Reserve System in respect of reduction in monthly purchases of bonds. Recall that gold prices have fallen by about 20% this year on expectations that the U.S. Federal Reserve will cut their economic stimulus program.
The cost of the October gold futures on COMEX today dropped to $ 1325.10 per ounce
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