The price of gold rose above $ 1700 dollars

Today, for most of trading gold was trading slightly lower, but the situation changed dramatically after the European Central Bank announced a reduction in GDP growth forecasts. According to their estimates, next year the economy contracted by 0.3%. Meanwhile, just three months ago predicted GDP growth of 0.5%. As for 2014, the ECB expects economic growth of 0.2% -2.2%.

Note that the confidence in gold began to decline this month after the course was not able to reach a level of $ 1,730 in November. Many investors preferring the more risky and interest-bearing assets, while the amount of investment in gold declined.

In addition, market participants expect tomorrow's report on employment in non-agricultural sector, as well as a clear signal that the United States intention to fight to the prevention of so-called "fiscal cliff."

Recall that yesterday, the gold price in euro drifted into oversold after falling nearly 2% this week, showing at the same time the biggest one-day drop in six months, and the lowest level since mid-July at around EUR 1,288.85 per ounce.

Meanwhile, investors' appetite for physical gold and physical securities investment products remains high, while in one of the largest gold ETF SPDR Gold Trust, it remains at a record high.

Demand in India, which has historically been the largest buyer of gold in the world, was also increased as prices have fallen to their lowest level in a month.

December futures price of gold on the COMEX is now 1700.50 an ounce.