Growth of gold prices on Monday
After corrective decline on Friday, due to the increased volatility in financial markets after rising geopolitical risks, the price on gold rose. Although the price is still in the range of previous sessions. August futures for gold, Comex, increased by $ 4.5, or 0.3%, to 1313.90 current dollars per troy ounce.
September silver futures grew by 12 cents, or 0.59%, to 21.01 dollars per troy ounce. Upcoming increase in the price of precious metals can prevent susceptibility to prices from buyers in Asia. Worsening geopolitical situation in the short term may increase the “risk bonus” in the price of gold, however, limited the growth of the past allows us to predict that the decrease in demand at too big a price increase due to the political risk would be sufficient to contain prices.
Hedge funds cut down the long gold positions for the first half of the month, according to the CFTC. Amount of short positions on gold rose by 32%, the highest growth rate for 7 weeks.