Gold: an overview of the market situation

The price of gold fell to four-week low against the strengthening of the dollar against the euro to a six-week high after weak economic data in the eurozone. In addition, the pressure on gold have weak data on U.S. industrial production.

According to the statistics bureau Insee, GDP the second largest economy in the euro zone declined for the first three months of this year by 0.2% compared with the previous quarter. In the 4th quarter of 2012, the French economy also declined by 0.2%. So far, since the global economic downturn in 2008-2009, in contrast to the rest of the euro area, the French economy avoided falling into recession, which is usually defined as a decline in GDP for two consecutive quarters.

At the same time, the report of the Federal Reserve System, which was published on Wednesday showed that U.S. industrial production fell in April, as the decreased production in the manufacturing industry, and the demand for utilities restrained weather conditions, which are more consistent season. This is another sign of slow economic growth. According to the data, industrial production in April, adjusted for seasonal variations fell by 0.5%. Capacity utilization fell to 77.8% from 78.3%.

The cost of the June gold futures on COMEX today dropped to 1391.40 dollars an ounce.