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Gold is trading slightly higher after a volatile Friday session conducted. American statistics today did not come out and win back investors last week's events. Gold prices ended the week higher by 0.5% after Thursday they have received support from the ECB's decision to lower the prime lending rate. The ECB also lowered the rate on deposits to 0.1%, which is now the banks will pay for storage facilities at the ECB.
Gold prices typically increase during periods of loose monetary policy, as investors fear that such programs can reduce the cost of their capital or lead to inflation, often buy the precious metal as a hedge. Nevertheless, to a lesser extent gold has attracted investors in times of tighter monetary policy.
On Friday, gold prices fell after the U.S. Labor Department reported that the U.S. economy has increased in May, 217,000 jobs. Value was better than the forecast of economists, who had expected growth to 219,000.
Strong employment report pointed to continued economic recovery and confirmed investors' expectations that the Fed will turn your incentive program by the end of the year, freeing the way for rising interest rates.
"The Fed is not going to stop folding stimulus. Employment is growing, and the stock market goes up," - said Ira Epstein, director of the Ira Epstein division at Linn Group.
But the price of gold for some time fluctuated between growth and decline, then began to decline. This is an indication that the report was not strong enough to dictate the direction of the market, said Frank McGhee, the dealer Integrated Brokerage Services.
Some brokers also said that the continued improvement in the labor market increases the inflation expectations of some investors, causing them to turn to gold again.
"Next, we'll see after the employment growth - is wage growth, and a good sign for inflation," - says Adam Klopfenstayn, senior analyst Archer Financial Services.
The cost of the August gold futures on the COMEX today rose to $ 1257.3 per ounce.
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