Gold: an overview of the market situation

Gold prices rose slightly, being at the same time near three-month high, which was associated with an increase in reserve funds and expectations of key data on the U.S. labor market.

"Large injections into the fund for two consecutive days support prices. This is a good sign, because the physical demand in Asia is weak because of higher prices. Their further growth seems increasingly likely, given the unrelenting tension in Iraq and Ukraine ", - said a trader in Hong Kong.

As it became known, the world's largest reserves secured gold exchange-traded fund SPDR Gold Trust on Tuesday rose by 5.69 tonnes to 796.39 tonnes. Due to the size of the fund can be considered as an indicator of market sentiment.

Market participants are also watching the situation in Ukraine, where troops continue an offensive against militias in the east. Regarding the situation in Iraq, Sunnis and Kurds left the first session of the new parliament after the Shiites could not find a replacement for Prime Minister Nouri al-Maliki, thus reducing the probability of there quickly create a unity government that would have saved the country from a split.

It is worth noting that traders expect the employment report in the U.S., which will be published on Thursday and will assess the state of the world's largest economy. The data will be released one day earlier than usual, in connection with the celebration of U.S. Independence Day on Friday, July 4. Also tomorrow, will be announced the results of the European Central Bank, which should give a clue about the future strategy of monetary stimulus

Pressure on gold today have data from ADP, which showed that private sector employment in the U.S. increased by 281,000 jobs in June. Economists had expected ADP report on growth in June, only 206,000. Increasing employment in May from ADP was unchanged at 179,000. Evaluation precedes ADP report on the situation on the labor statistics from the Employment Bureau. Economists expect that off-farm employment increased by 211,000 in June, compared with 217 000 in May. The unemployment rate in June is expected at 6.3%.

Market participants are also preparing for the performance Fed chief Janet Yellen at the International Monetary Fund, to hear further hints on the future course of monetary policy. Following her comments follow a conversation with the director of the IMF, Christine Lagarde.

The cost of the August gold futures on the COMEX today rose to $ 1330.9 per ounce.