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Gold prices have returned to the opening day after a sharp decline on strong US GDP data, which caused a rise in the dollar.
US Department of Commerce to improve the estimate of GDP growth in the third quarter of 2014 from 3.5% to 3.9%, based on the annual rate, according to the published Tuesday revised data. Analysts on average had expected a decline to 3.3%.
In the 2nd quarter of this year the US GDP rose by 4.6%, showing the maximum growth since the fourth quarter of 2012. GDP growth in six months - April-September 2014 - was the best in more than a decade - from the 2nd half of 2003.
Consumer spending, which accounts for about 70% of the US economy grew in the third quarter by 2.2%, whereas previously reported an increase of 1.8%, while experts predicted revision to 1.9%. Their growth, in particular, explained the highest for several years increased spending on durable goods - by 8.7%. Consumer sector added 1.5 percentage points (pp) to the growth of US GDP in the last quarter.
Market participants also expect the results of the referendum in Switzerland about the gold reserves of the central bank. In Switzerland, November 30 will be a referendum on a proposal to ban the country's central bank to sell gold reserves and oblige him to keep at least 20 percent of assets in gold, compared with 8 percent in October. According to analysts, if the Swiss will support this proposal, the price of gold will rise.
"Voting" yes "can cause a rapid rise in gold prices to $ 50. Most market participants expect that the proposal would not be supported, and although such a decision is not unexpected, it may cause psychological blow to the market, and the downward trend will resume, although prices unlikely to fall much, "- said HSBC analyst James Steel.
The cost of the December gold futures on the COMEX today fell to 1189.0 dollars per ounce, and then increased to $ 1,200.
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