Deflationary pressure in China allowed to slow down the increase in gold prices, now in the market there is a pullback from a maximum of three months levels. Also, such a situation could have a negative impact on expected increase of Fed interest rates and put them on a more long-range period.

The price at the closing of trading on Tuesday ranged around $1 168.40 per troy ounce, and this morning dropped to $1 166.71. About a day ago, quotes were at $1 176.20, and US gold futures for December's supply increased in price by $1.20 to $1166, 60 per ounce. Meanwhile, China's consumer price inflation fell to 1.6% from the level of 2.0% in August. Producer prices are falling almost 4th year in a row. Analysts at Capital Economics explain this behavior by the fact that the Fed continues to carry the growth rates at a later date. Now, many investors believe that the rates will not increase this year.

Gold continues its upward rally from October 2, and its price rose up to 5%. This was the market's reaction to unexpectedly weak indicators for unemployment in the US. Traders no longer rely on the Fed, which assured that rates will be increased this year. Some of members of the board of the Fed believes that economy is still not ready to increase interest rates this year, and the head of the Federal Reserve Bank of St. Louis James Bullard believes that rates will not be raised in October.