Gold: a review of the market situation

Gold prices rose sharply, returning with all previously lost positions today, as the drop in European stock indices increased demand for safe assets. However, the precious metal again closes week lower, mainly due to the strengthening of the dollar.

The dollar is generally supported after strong data strengthened further optimism about the strength of the US economic recovery and emphasized expectations that the Federal Reserve will raise interest rates next year. High interest rates to stimulate the US national currency and putting pressure on gold, has received support from the central bank liquidity and low interest rates after the 2008 financial crisis.

"Gold prices have not changed at the end of 2014, which was quite impressive, considering the fact that the dollar during this period went up by 12 percent - said a senior manager Ole Hansen Saxo Bank. But as long as we continue to see the expectations associated with growth dollar, investors will not look at gold as an investment opportunity. "

It is worth emphasizing, trading volume today is lower than usual, as the Chinese and Japanese markets were closed for the holidays.

The course of trading also influenced statements of the ECB Draghi, who acknowledged the high risk that the ECB will not be able to fulfill its mandate. As he pointed out, to fulfill the mandate under which the ECB should be the guarantor of price stability, it has become more difficult than six months ago, while reaffirming its commitment to action at the beginning of this year, if circumstances so require.

Meanwhile, data showed that inventories in SPDR Gold Trust, the world's largest gold exchange-traded funds, fell 0.25 percent on Wednesday, reaching a new six-year low 709.02 tons. By the end of 2014 stocks fell by 140 tonnes, which is significantly less than the outflow to 460 tons in 2013.

The cost of the February gold futures on the COMEX today rose by $ 6.1 to 1190.00 dollars per ounce.