Gold prices declined significantly today, reaching at this month low, which was associated with the strengthening of the US dollar across the board. Market participants are also cautious amid uncertainty caused by the situation in Greece and Ukraine.
Since the beginning of February, spot prices fell nearly 4 percent, as a strong dollar and expectations of higher interest rates in the United States put pressure on investor sentiment. Published last week upbeat employment report in the US has forced investors to reconsider the expectations of the first rate rise in June. Expectations rise in interest rates had a negative impact on the dynamics of the price of gold, as the precious metal can not compete with the earning assets with growth rates.
"If you stop buying associated with risk aversion, gold market in the near future will continue to be under pressure. Also, it will affect the Fed's policy, especially if the market decides that the interest rates will be raised in June. Prices are subject to closer to $ 1,200 before the demand will grow enough to stop the fall in prices, "- said HSBC analyst James Steel.
Remember, today held an emergency meeting of the Eurogroup, which is expected to Greece will propose to conclude an interim agreement on the financing of the country. Finance Minister Wolfgang Schaeuble Germany there are no plans to discuss the issue dispelled expectations of a possible conclusion of the Interim Agreement.
In addition to Greece, today the market's attention is also directed to meet Ukrainian President Poroshenko, German Chancellor Merkel, French President Hollande and Russian President Vladimir Putin. Late last night came the news that Obama had a conversation with Putin, during which the US president urged his Russian counterpart, do not miss this week and a chance to find a diplomatic solution to the crisis. US Treasury Liu also said yesterday, "the urgency of early joint decision" and "some progress in this direction in the last few days"
March futures price of gold on the COMEX today fell to 1220.10 dollars per ounce.