Gold prices fluctuate amid rising dollar and demonstrations in Hong Kong.
The dollar against a basket of six major currencies hit four-year high and is close to a six-year peak against the yen due to the acceleration of economic growth in the United States in the second quarter.
Consumer spending in the United States rose slightly in the last month, which may be a sign of a more substantial economic growth in the 3rd quarter. Ministry of Commerce announced that in August of personal expenses of Americans increased by a seasonally adjusted 0.5%. Figure for the previous month was revised upwards - to 0.0% from -0.1%. Amount of personal income, meanwhile, rose 0.3% after increasing 0.2% in July. Changing these two indicators is fully in line with the expectations of experts. In August, spend more on goods rose by 0.4% compared to July, including due to the 1.8 percent jump in spending on durable goods. Spending on services rose by 0.5% compared with July.
Asian stock markets ended the trading session on Monday in different directions, but the Hong Kong Stock Exchange index fell nearly 2 percent due to collisions between demonstrators and police. Dealers are concerned that the turmoil will scare off tourists on the eve of the holiday week in China, which will begin on Wednesday, which will affect the sale of gold jewelry. China - the world's largest consumer of gold.
"It will certainly affect the retail sales of gold. Usually in Hong Kong for the holidays comes a lot of Chinese tourists who buy jewelry, but this time they can deter protests," - said General Manager dealership office Heraeus Metals in Hong Kong Dick Poon.
The world's largest reserves of the gold-exchange-traded fund SPDR Gold Trust on Friday fell by 1.2 tonnes to 772.25 tonnes - the lowest level since December 2008.
The cost of the October gold futures on the COMEX today rose to 1222.20 dollars per ounce.