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Gold prices fell markedly today , departing from the 10 - week highs as traders began to gradually fix their positions ahead of a key meeting of the Federal Reserve this week. Recall that at the end of last year, the Fed has decided to reduce the amount of their stimulus package of 10 billion dollars a month - up to $ 75 billion . Many experts expect the Fed will reduce the amount of bond purchases by 10 billion at each subsequent meeting to end QE this year.
We add that the decline in world gold reserves by 2.3 percent last week helped secure precious metals rise on the week , which turned out to be the fifth in a row. This is the longest series of growth since mid- 2012 .
Stock markets also continued to fall today as concerns over a slowdown in China's economic growth and its shadow banking sector , combined with the expectation that the Fed will reduce its purchase of bonds , increased pressure on emerging markets with regard to their dependence on external financing . In the longer term , any recovery actions, in all probability, will limit the rise in prices of the precious metal .
Meanwhile, adding that China's net imports of gold from Hong Kong grew by 24 percent in December compared with the previous month , bringing the procurement in 2013 reached a record 1,158 tons. Net exports to China, which is the world's largest consumer of gold , rose to 94.847 tons in December from 76.393 tons in November.
"In connection with the start of the Chinese New Year , demand is likely to fluctuate at the end of the week," analysts said.
Little support gold had a statement from the Ministry of Finance of India , in which it was said that by the end of March will be revised stringent restrictions on imports of gold.
Cost February gold futures on the COMEX today dropped to $ 1260.80 per ounce.
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