Gold is rising

Gold rose by more than 1% to over 1100 dollars per troy ounce on Monday, accomplishing the biggest intraday growth for the past seven weeks as the dollar fell and Fed’s comments increased the uncertainty surrounding the forthcoming increase in interest rates.

The price of gold fell during the second half of the year due to the perspectives for the increase in interest rates.

However, last month the gold found support around 5 and a half year low of 1077 dollars.

Spot gold gained 1% to 1 104.07 dollars per troy ounce. US gold futures for December delivery rose by 0.9% to 1 104.10 dollars per troy ounce.

The gold price continued rising because of covering of short positions and because of the activation of deferred orders for purchase around the level of 1100 dollars.

Last week, gold achieved a seventh consecutive weekly loss, recording its longest losing streak since 1999 until now.

On Friday the stocks of the largest public fund in the world, based on gold, SPDR Gold Trust, fell to lowest level since September 2008 until now.