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Gold to Close One of Its Best Weeks In Years

July 12, 2013 at 16:53 by Andriy Moraru

The bullish technical correction combined with some gold-positive developments in fundamentals have pushed the metal up above the late June levels this week. Gold is still experiencing its best weekly gain since 2011 even after today’s minor drop caused the US dollar strengthening.

The precious metal demonstrated its first positive week after three major weekly drops: 7.2 percent, 3.9 percent followed by 1.7 percent. The decline’s magnitude contraction over these weeks clearly signals of the downtrend exhaustion. This week’s Monday and Wednesday sessions drove the commodity up despite some uncertain price action on other days.

Bernanke‘s speech on monetary policy, which confirmed that there will be no soon end to the current loose mode, together with the release of the FOMC minutes for the latest committee meeting contributed to this week’s drop of the US currency. As it often happens, dollar-negative news spurred buying mood in commodities and, especially, in gold. Today, the greenback recovered some of its losses, rising 0.4 percent versus the euro, and correspondingly the gold price fell 0.5 percent.

Gold spot price fell from $1,283.47 to $1,277.19 per troy ounce as of 16:45 GMT today. The previous week ended at $1,219.21 per troy ounce, which corresponds to a 4.8 percent gain for the current week so far — the best result since mid-August 2011.

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