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Gold prices decline as rising expectations of higher interest rates in the United States and much got stronger dollar continue to put pressure on precious metals.
Gold futures declined by 9.2% in the three months ended September 30, amid speculation that the strengthening of the economic recovery in the United States will push the Federal Reserve to an earlier and more rapid increase in rates than previously expected.
For storage of gold funds are needed, and it is inferior to the competition with earning assets at higher interest rates.
Meanwhile, the USD index rose nearly 7.5% in the quarter, noting the largest jump since the global financial crisis of 2008.
A strong dollar usually puts pressure on gold, because it reduces the metal's appeal as an alternative asset and increases the cost of dollar-denominated commodities for holders of other currencies.
Today we have published data on the housing market the United States, which have provided some support to the dollar. Housing prices in 20 American cities have grown by the end of July, but showed the slowest pace in nearly two years, as tight credit conditions and weak wage growth have put pressure on demand.
July house price index from the S & P / Case-Shiller increased by 6.7 per cent (the smallest increase since November 2012), after rising 8.1 percent in the previous month. Experts expect that this figure will grow more significantly - by 7.5 percent.
The cost of the October gold futures on the COMEX today dropped to 1204.00 dollars per ounce.
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