Gold: an overview of the market situation

Gold prices fell sharply , dropping to a week with a minimum of what was due to the strengthening of the dollar. Note that in the course of trade is also affected by the fact that many market participants are waiting for the important U.S. data , which will be presented at the end of the week, and can provide some clues about when the Fed will begin to reduce the amount of its monetary incentives. We add that the report on the change in the number of people employed in non-agricultural sector , as well as data on GDP and PMI index for the manufacturing sector can provide a deeper understanding of the state 's largest economy in the world. Gold investors were concerned that a strong recovery may prompt the Fed to start reducing monthly bond purchases , which further hurt the value of precious metals .

Recall that the next meeting of the Fed is scheduled for December 17-18 .

It should also be noted that the fall in prices has also helped American report by the Institute for Supply Management . He showed that in November the activity in the U.S. manufacturing sector has grown, despite the expectations of economists to decline. PMI index for the U.S. manufacturing rose this month to 57.3 vs. 56.4 in October. A reading above 50 indicates expansion of industrial activity. Note that the latter growth was a surprise to economists , as they forecast a decline to 55.2 .

Index increase was primarily due to robust growth components production, new orders and employment. At the same time , a decline compared with the previous month , it was noted by the component stocks and prices .

Meanwhile, data showed that the gold reserves in the SPDR Gold Trust fell from the beginning of this year, more than 450 tons - to 843,21 tones , which is the lowest level since early 2009 .

The cost of the December gold futures on the COMEX today dropped to $ 1228.00 per ounce.