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Gold prices recouped after yesterday's losses as a retreat in stocks, falling oil prices and a weaker dollar revived demand for the precious metal. Worries about the consequences of snap elections taking place in Greece in January further supported prices. Yesterday Greece's Prime Minister Samaras failed in the third and final attempt to have his presidential candidate elected by the Greek parliament.
At the moment gold is down 1.5% for the year 2014. A strong U.S. dollar fuelled by solid U.S. data, a rally in stock markets and expectations on a benchmark interest rate hike by the FED weighed on the metal. Higher U.S. interest rates would boost the greenback and would have an impact on the dollar-denominated metal as it becomes more expensive for holders of other currencies.
Trading volumes are expected to be low this week ahead of the new year's holiday which could lead to volatile and erratic markets. The precious metal is currently quoted at USD1,187.00, +0,26% a troy ounce.
GOLD currently trading at USD1,187.00
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