Gold: an overview of the market situation

Gold prices fell sharply today, losing about 1.1%, which was due to the rise in the dollar and the increase in yield of U.S. government bond yields to two-year high. Note that this dynamic in the first place was due to the release of data on the U.S., which increased the likelihood of reducing the Fed's economic stimulus program.

The data from the Labor Department showed that consumer prices rose 0.2 percent in July after a 0.5 percent increase in June. The slight increase in the price corresponds to the economists. Core CPI, which excludes food and energy, also rose by 0.2 percent. U.S. consumer prices in July rose for the third month in a row, bringing inflation rose to historically low levels.

Meanwhile, another report from the Labor Department showed that for the week ended August 10, the initial applications for unemployment benefits in the U.S. fell more than expected. At what number of applications for unemployment benefits fell to the lowest level in more than five years.

According to the report, the primary applications for unemployment benefits in the U.S. for the week August 4-10 decreased by 15 thousand to 320 thousand, the consensus forecast of 334 thousand also add that the primary applications for unemployment benefits for the week of July 28 - August 3 revised to 335 thousand from 333 thousand Meanwhile, secondary applications for unemployment benefits in the U.S. for the week July 28 - August 3, decreased by 54 thousand to 2.969 million

The latest figures were seen by analysts as those that may force Fed officials to reduce the monthly volume of asset-purchase program in September.

We also add that to the price of gold is also affected by quarterly reports U.S. hedge funds, which have shown that many of the participants have reduced, and in some cases completely sold their shares to a sharp fall in prices this year. Note that the outflow of capital from the eight largest gold exchange-traded fund totaled nearly 20 million ounces, or $ 27 billion, this year.

The cost of the October gold futures on COMEX today dropped to $ 1326.10 per ounce.