Gold continue to accumulate

Gold moderately increased in price in the first half of the session, but later lost almost all positions on the background of a significant strengthening of the dollar after the release of strong US housing data.

The dollar index rose to its highest level since mid-March making dollar-denominated gold more expensive for holders of foreign currency.

The US Commerce Department reported that housing starts rebounded in June by 4.8 percent to an annual rate of 1.189 million compared with the revised estimate for May at the level of 1.135 million. Building permits, an indicator of future housing demand, also rose by 1.5 percent to an annual rate of 1.153 million in June compared with the revised 1.136 million in May. Economists assumed that the building permit will increase to 1.150 million from 1.138 million, which was originally reported in May.

"Lately we see more positive economic data from the US. Against this background, the likelihood that the Federal Reserve will return to the question of raising rates inceased.", - Said Nitessh Shah. Recall, higher rates have a downward pressure on the price of gold.

The course of trading was also affected by expectations of the European Central Bank meeting outcome. Economists say that the ECB is likely to refrain from further easing, but it can make changes to the bond buying program by expanding the list of assets available for acquisition.

Gold reserves in the largest investment fund SPDR Gold Trust rose yesterday by 0.25 percent and amounted to 965.22 tons.

The cost of the August gold futures on the COMEX rose to $ 1329.90 per ounce.