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Gold prices rosetoday, reachingat the sametwo-week high, as theminutes of the Fedlowered thefears ofearlyrate hikes.Nevertheless, therecoveryyield of10-year bondsabove the lowsin Augustput pressure on theprecious metal.
RecallyesterdaypresentedMinutesof the Fed meetingpointed out thedifferencesbetween the members ofthe board of directors.Someof them believethat the existingwordingmisleadingas to the timingof rate increases,and that the growthof interest on loansshould betied tothe success ofthe American economy.The data also showedthat the central bankhas reducedthe United Stateseconomic growth forecastbecause of thefledglingdollar andconcerns aboutthe weakness ofthe global economy.Expectationsof rising interest ratesput pressure ongoldasthe precious metalis inferior incompetition withearning assetswith growthrates.
"Despite thenew interpretation of theprotocolof the meetingof the Fed,we stillbelievethat the central bankwill raiseinterest rates inthe first half of2015,andthereforedo not see anychangesin the forecastforthe gold market," -said the analystINTL FCStone.
Support forgoldalso continues to providea solutionthe International Monetary Fundlowered its forecast forglobal economic growthfor the third timethis year.IMF expertshave warned thatthe global economic recoveryis weakand uneven.
"Pricesarestillupto $1.230-1.240, butat this levelwill beprofitable to sellgold.Given thegrowth of stock markets,is expected to declinein gold pricesby the end ofthe year "- said a traderin Sydney.
Meanwhile,it was reported thatthe world's largestreserves ofthe gold-exchange-traded fundSPDR Gold Trustdeclinedyesterdayby 5.38tons to762.09tons (lowest since December2008.
The cost ofthe Decembergold futureson the COMEXtodayrose to1226.10dollars per ounce.
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