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Gold Rallies, Still Down Over Week

June 22, 2012 at 22:39 by Vladimir Vyun

Gold rallied today on renewed concerns about European economies and the impact the financial crisis has on them. The Ifo Business Climate Index for industry and trade in Germany continued to fall in June, declining from 106.9 to 105.3. Yesterday, Moody’s Investor Service cut credit ratings of 15 banks, spurring a wave of risk aversion among investors.

Gold bulls hoped that a long-anticipated third round of quantitative easing from the Federal Reserve would boost the precious metal. The Fed refrained from QE3, but expanded its Operation Twist. Perhaps that helped the metal today. Yet gold was falling all the previous days of the week and posted a significant weekly losses.

Gold went up from $1,564.20 to close at $1,571.90 on COMEX today. The daily low was at $1,557.80, the lowest since June 8. Over the week, prices were down 3.8 percent, mainly because of yesterday’s huge slump.

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