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Gold prices declined moderately, but still retreated from session lows. Many market participants are waiting for new catalysts for the growth of the market, which is likely to prove the monthly employment data in the U.S. and the ECB meeting later this week.
On Thursday, investors will wait for the release of the report on employment in the U.S. non-farm payrolls, which will give further views on the strength of the labor market. Analysts expect the U.S. economy grew by 211,000 jobs this month, while the unemployment rate must have remained the same at 6.3%.
Gold prices supported amid expectations that the Fed will keep interest rates for an extended period of time after data last week showed that the U.S. economy shrank at an annualized rate of 2.9% in the first quarter.
It is worth noting that the price of gold is close to the maximum in the last 2 months due to a weaker dollar and geopolitical tensions. Iraqi army uses tanks and armored vehicles to liberate the city from Sunni militants in the north of Tikrit. In the area of the city in eastern Ukraine Slovyansk fighting continues with the militia, despite the declared truce.
"From a technical point of view, the gold market looks good: support - $ 1,300 and resistance - $ 1,335. Growth is possible, but significant movements occur only at the end of the week after the employment report in the U.S. and the ECB meeting, "- said precious metals trader in Hong Kong.
Meanwhile, experts have warned that price volatility may increase at the end of the week, when it published a series of new economic data. Market participants will be absent from the United States on Friday of the Independence Day celebrations, which will be an additional factor of volatility on Thursday. In the absence of significant news from the geopolitical front gold prices will vary oppositely dollar.
The cost of the August gold futures on the COMEX today dropped to $ 1317.2 per ounce.
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