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Gold prices recovered after close to two-week low , but it will likely show up to a week decline the second consecutive week amid increasing expectations that the Fed will soon begin to reduce the program of buying bonds.
Incentives Fed was the main cause of the rise in gold prices in recent years, and since the beginning of this year, gold fell by 18 percent because of weather minimize incentives.
However, the data released today by the U.S. labor market showed that employers in August have created 169,000 new jobs in July - only 104,000 . This suggests that the labor market recovery is not gaining momentum, which may complicate the plans of the Federal Reserve System in respect to minimize the program to stimulate the economy .
In late August, gold rose to a maximum of three months or about $ 1,433 due to fears that the United States will strike a missile attack against Syria, but then the market was distracted by geopolitical issues and drew attention to the state of the U.S. economy.
Physical market participants are seeing an increase in buyer activity in India and expect growth of purchases in the next week , as the government explained the new import rules . Demand for gold in India - its largest consumer - reaches its peak in August and September on the eve of a succession of events , most of which will be the festival of lights in November.
The import of gold was one of the main reasons for a record trade deficit of India , so the government raised the import duty on precious metal to a record high of 10 percent.
The cost of the October gold futures on COMEX today rose to $ 1393.0 per ounce.
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