The cost of the yellow metal plummeted

Gold prices down on Thursday after the U.S. published data on the labor market, which exceeded analysts' expectations, according to the auction. The August futures for gold during trading in New York Comex Exchange at 19.00 MSK fell by 0.2% to 1,189.6 dollars per troy ounce. U.S. Labor Department reported encouraging data on the U.S. labor market, according to which the number of initial claims for unemployment benefits in the U.S. for the week that ended July 3 fell by 21,000 compared with the previous week - to 454 thousand. Analysts had expected that the number of initial claims fell for the week by 12,000 and reach 460,000. Reducing the number of applications for unemployment benefits led to a decline in popularity of metal among investors as a reliable means for investment. In addition, the International Monetary Fund (IMF) raised its forecast for global growth. Now, it is expected that world GDP will grow by 4,6% compared with an increase of 4,2%, which is expected in April this year. This forecast is also not the best way affects the value of gold, which is traditionally more popular in periods of instability in the global economy. Opinion on the developments in the gold market analyst expressed Richcomm Global Pradeep Unni (Pradeep Unni), as quoted by MarketWatch. He believes that "the restoration of the value of gold to current levels provoked investors to accumulate long positions." Since 2010 gold has risen in price by 10%. Gold is able to demonstrate the rising cost of the tenth consecutive year that will be the most prolonged period of increasing prices of the metal, at least since 1920. Rise in price of gold in recent years was caused by the increase in volatility in global financial system, economic crisis and the beginning of this year, the main "engine" of growth of prices for the metal has become a debt crisis in Europe. During the crisis in the economy of the gold is particularly popular with investors who see it as a more reliable alternative to volatile currencies and subject to severe fluctuations in shares of companies. In most cases, the gold in the period of instability in the global economy helps investors not only to preserve free cash flow, but also increase them. Bank.ru Materials Rihanna.