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Gold prices rose markedly , as investors assessed the effect of reducing the dollar after policymakers in Washington failed to make progress on the settlement of the issue of the budget . Analysts say that while investors are increasingly worried that the political standoff in Washington will cause greater volatility in the market, as the date by which it is necessary to raise the debt limit is approaching , the hope of reaching a consensus remain high. But if Congress to October 17 will not increase the upper limit of U.S. debt , the largest economy in the world can announce an unprecedented default. Congressmen have not yet agreed on the financing and government agencies , closed for nearly a week .
Recall that in the last debate on the U.S. debt ceiling in 2011, the price of gold reached a record high of $ 1,920 an ounce. Then an agreement was reached by the Congress in the last minute.
Add that to the course of trade is also affected by a message from the World Bank. As it became known today, the World Bank cut its growth forecast for developing countries in East Asia, citing the weak growth in China and other countries in the region.
The bank now expects 7.1 percent growth in the developing countries of East Asia in 2013 , which was significantly lower than the original forecast of 7.8 percent, which was reported in April. Add that growth for 2014 is expected to reach 7.2 percent , which was also weaker than earlier forecast of 7.6 percent.
China's economy , which is the largest in the region is projected to expand by 7.5 percent this year and 7.7 percent in 2014. Note that these predictions were less than the April estimates of 8.3 per cent ( for 2013 ) and the rate of 8 percent ( for 2014 ) .
The report said that the slowdown in China's growth reflects the government's efforts to move from an export-oriented economy to one that focuses on domestic demand . It should be noted that the growth in the large middle -income countries , including Indonesia, Malaysia and Thailand, was also lowered in light of the decrease in investment, lower global commodity prices and the weaker -than-expected export growth .
According to the lender, now are the risks associated with the restructuring of the Chinese economy . A larger -than-expected decline in investment may have a negative impact on the region , especially on suppliers of capital goods and industrial raw materials in China , the bank said .
It should also be noted that despite the lack of publication of key U.S. data , traders are likely to remain cautious in the coming session . Add that any increase in physical demand, especially from China , who returns after a one week vacation , will also be in the spotlight.
The cost of the December gold futures on COMEX today rose to $ 1322.90 per ounce.
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