Gold prices decline on profit taking after four days of growth, but this week is likely to show the highest growth in almost two years.

Since the beginning of the week the spot price rose 5 percent from a record weekly rise of 6.2 percent in October 2011.

From the beginning, gold fell by nearly 25 percent because of fears that the Fed will soon begin to reduce the amount of buying bonds from the current $ 85 billion a month. But Fed Chairman Ben Bernanke said on Wednesday that the central bank will keep a policy change in the near future. Minutes of the June meeting of the Federal Reserve showed that although many officials of the central bank does not want to reduce the amount of incentives is not yet convinced of the sustainable growth of employment, they generally agree that it is time to reduce the amount of buying up bonds.

According to analysts, gold will face resistance when trying to cross a boundary $ 1,300 per ounce. Many analysts are predicting that gold will fall in price this year due to an increase in demand for stocks, reduction of investments in gold-backed exchange-traded funds and weak physical demand.

The cost of the August gold futures on COMEX today dropped to $ 1266.40 per ounce.