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The price of gold reached a four-week high amid downturn in the equity markets and the dollar, as investors prefer low-risk assets, fearing for the stability of the global economic growth.
Asian stock markets during trading fell to seven-month low, while oil prices are close to a minimum of four years.
"With the decline of the dollar and the stock price, as well as comments from Fed officials over the weekend, which were perceived as favorable gold prices may continue to rise. We expect to increase to $ 1.240-1.250, but at this rate we will sell," - said a trader at precious metals in Hong Kong.
Fed officials expressed concern about the state of the world economy, forcing analysts to revise the forecast rise in interest rates. The delay in the rate increase is positive for the gold market, non-interest bearing.
"This week, gold will affect the stock markets and the dollar. We believe that these markets will continue to decline in the near future, giving support to the quotations of gold," - said analyst Edward Meir INTL FCStone.
The world's largest reserves of the gold-exchange-traded fund SPDR Gold Trust on Friday fell by 2.64 tonnes to 759.44 tonnes - the lowest level since December 2008.
Singapore on Monday began trading 25 killogramovymi contracts for gold to set the indicative price for the region. The most traded contract expiring on Tuesday, at the close of trading on the Singapore Exchange was worth $ 39,685 per gram, or $ 1.234,20 an ounce.
The cost of the December gold futures on the COMEX today rose to 1238.00 dollars per ounce.
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