Gold: a review of the market situation

Gold prices fell markedly, while losing about 1.5 percent, due to the expectations of the Fed's publication of the protocol, as well as the approach of the Swiss referendum on gold, which is scheduled for next week.

Experts point out that if the protocols are not will signal to strengthen the tendency to tighten policy, and inflation will decline, gold is likely to continue to strengthen.

But in the short term, gold prices are likely to remain vulnerable amid signs that the strengthening US recovery could force the Fed to start raising interest rates earlier and more sharply than expected. Expectations of growth rates on loans put pressure on gold as a precious metal with difficulty competing with the yield of interest-earning assets at higher rates.

Had little effect as today's data on the US housing market. It is learned that the establishment of new homes fell 2.8% in October compared with a month earlier and to a seasonally adjusted annual rate reached 1,009,000 units. The fall was due to a decrease in construction mnogkvartirnyh homes - a category that provides a smaller contribution to economic growth, rather than single-family homes. Building permits (an indicator of future construction) increased by 4.8% last month - to the level of 1.08 million units. Economists had expected the establishment of new homes will rise by 0.8% last month, while building permits increase by 0.6%. September bookmark new homes revised up to an annual rate of 1.038 million, showing an increase of 7.8% from August. The initial reading is intended to increase by 6.3%. September building permits have not been revised and made 1.031 million units.

The value of the precious metal is also affected by the change in the US currency. Add the dollar to a basket of six major currencies rose due to falling yen to seven-year low. "It looks like it was another short covering, as the price does not hold above $ 1,200. The dollar remains the main factor affecting the price "- say experts.

The cost of the December gold futures on the COMEX today fell $ 17.7 to 1180.10 dollars per ounce.