Gold: an overview of the market situation

Gold traded down though and could recover some of the previously lost positions as strong U.S. data and optimistic outlook for global economic growth caused a rise in the dollar and stocks, which put pressure on the metal.

As it became known , the U.S. producer price index rose a seasonally adjusted 0.4% in November , led by a jump in energy prices. This happened after declining for two consecutive months , and marked the biggest increase since June. However , producer prices for the entire 2013 rose by only 1.2% , it is the smallest annual growth rate since calendar 2008. Main producer prices , which exclude volatile prices for food and energy , increased by 0.3% from November and 1.4 % for the whole 2013 . Growth last month was lower than the forecast of economists expect an increase in overall prices by 0.5% , while the growth of the base prices was above forecasts of 0.1 %.

" The gold market is largely dependent on U.S. economic data , because they directly affect the forecast reduction ( Fed stimulus .) Report on retail sales was good, but the main event will be the Fed meeting later this month ," - said precious metals trader in Hong Kong.

On the price of gold is also influenced by the report of the World Bank , which raises forecasts for global economic growth , stating that the weakening of fiscal consolidation measures in countries with high income increased growth prospects.

Presenting its latest report on global economic prospects , the lender said it now expects that the global economy will grow by 3.2 percent this year , which was a little more than forecast at 3.0 percent, which was mentioned in the June report . It's also better than expected growth of 2.4 percent in 2013 . Much of this improvement reflects the growth in high -income countries, the bank said . In 2015, global gross domestic product will grow by 3.4 percent , which is slightly faster than the 3.3 percent that had been projected earlier. In addition , another report showed that the gold reserves in SPDR Gold Trust, fell on Tuesday by 3.56 tons - up to 789.56 tons , reaching a five-year low at the same time .

We also add that analysts banks Goldman Sachs and Credit Suisse advised to sell gold because, in their opinion, now is the best strategy game on the commodity markets . Their outlook - falling gold prices to $ 1,050 an ounce by the end of 2014. Analysts banks Commerzbank and Citibank different opinion . The upside of gold they appreciate in 1300-1400 dollars per ounce.

Cost February gold futures on the COMEX today dropped to $ 1241.00 per ounce.