Gold down to $1.327 as US dollar rises

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Global gold prices have been down by $29 to $ 1.327 per ounce, for the first time in six weeks due to the rise of the US dollar, a report said on Sunday. The US dollar was up following positive data on the US stocks and the profits realized by the US firms and banks during the first half of the year, said the latest weekly report by the Sabayik AlKuwait Company on Sunday.

Profit-taking and corrections dominated the gold trade at the start of the week when it fell from $1,360 per ounce to its lowest at $1.320 on Tuesday, it said. According to Sabayik, investors had expected gold prices to fall to about $1.300 per ounce, but it noted that the Bank of England maintained the Sterling interest rate unchanged which kept the euro and the Pound down, and in the meantime pushed the US dollar higher.

Gold prices were again up on Friday in the wake of the events in Turkey, as the ounce increased by $10 dollar. Sabayik expected gold prices to hit $1.375 in August, awaiting the outcome of meetings by the Bank of England and the European Central Bank which will discuss financial policies for the coming period. Gold could hit $1.400 per ounce in case the world capital markets carry on with their current trend, the report said. (KUNA)

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