Gold retreated from three-week high

Gold prices decline after three days of growth , but still close to three-week high , supported by a weak dollar and short covering .

Report agreement on the budget in the United States reduced the attractiveness of gold as a safe asset and physical demand in Asia weakened after a rise in prices . Analysts believe that in the near future prices will support technical buying .

Experts point out that from a technical point of view, gold should go up to $ 1,270 and then to $ 1,300 by the end of the year. However, this depends on whether the market will keep $ 1,250 resistance level , and from the Fed meeting next week.

Markets await Fed meeting on 17-18 December to see whether the central bank will start buying bonds to reduce the amount to $ 85 billion per month. Reducing incentives adversely affect gold, which is considered a hedge against inflation , but many analysts believe that investors have already taken into account in the quotations reduction incentives in December.

Gold prices were down most of 2013 against the backdrop of fears about what the completion of bond purchases by the Fed would deprive the market of a key source of support . Many investors turned to safer assets in mind fears that liquidity injections cause an increase in inflation or weaken the U.S. dollar.

Cost February gold futures on the COMEX today dropped to $ 1252.10 per ounce.