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Gold prices fell slightly , dropping below $ 1330 per ounce , but are on the way to its biggest monthly gain in seven months as persistent concerns over a slowdown in U.S. economic growth put pressure on the dollar.
Gold rose nearly 7 percent in February - the biggest increase since July , mainly due to weak data on the U.S. and China , and political and economic instability in Ukraine, which has raised the demand for the metal as a hedge against risk.
"In general , whether in Ukraine , economic data on the U.S. or concerns about China is likely there are many more reasons than it was six weeks ago , looking for gold ," said Nomura analyst Tyler Wade .
The dollar fell 0.5 percent against a basket of major currencies, mainly due to the strength of the euro after data on inflation in the euro area , which was higher than expected , easing pressure on the European Central Bank to ease monetary policy next week.
Gold also influenced the U.S. data . As it became known , the U.S. economy expanded at a slower pace than originally anticipated in late 2013 , becoming a sign of slowing growth against bad weather and weak foreign demand for American products .
Gross domestic product , the broadest measure of goods and services produced in the economy , rose to a seasonally adjusted annual rate of 2.4% in the last quarter of the year, compared with the initial estimate of 3.2%. About this Ministry of Commerce said on Friday . Economists had forecast a 2.6% increase .
U.S. economy grew in the third quarter of this year by 4.1 % , and the initial estimates for the fourth quarter increased hopes for higher growth , more rapid creation of new jobs and higher wages in 2014.
Instead, the economy seems to be back to its post-crisis path when overall growth remains stubbornly close to 2 %. Meanwhile, other recent indicators of consumer spending , job creation , industrial production and housing market began warning signs . While severe winter conditions may have exerted pressure and kept active , weak figures expressed concern about the strength of the economy at the beginning of the year.
Meanwhile, it became known that the situation in the physical market in Singapore has remained stable . Premiums for gold bars in Hong Kong fell to $ 1 per ounce from $ 1.70 last week, reflecting a drop in demand from China .
The cost of the April gold futures on the COMEX today dropped to $ 1325.60 per ounce.