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Gold prices are going down. Forecasts for the Fed rate growth are getting weaker in September

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Gold prices are going down. Forecasts for the Fed rate growth are getting weaker in September

Gold prices are going down. Forecasts for the Fed rate growth are getting weaker in September
September 06
15:00 2016

Gold prices have risen on Tuesday due to the weakening of the US currency. In its turn, this has happened because of the forecasts that the US Federal Reserve will not raise interest rates at the September meeting.

In the middle of the day the troy ounce of the precious metal has cost $ 1.332,16. At the close of the previous session the ounce cost $ 1.326,33.

Futures contracts for gold have risen by $ 9.8 to $ 1.336,50 per ounce in the United States.

The price of gold reached a minimum point for 2 months last Thursday – to $ 1.301,91 per ounce. This was due to the concerns that the strong statistics on employment in the US for the last month could convince the Federal Reserve in the necessity to increase the rate.

However, gold has risen in price again as the NFP data have not justified the forecasts.

Jens Pedersen, the senior analyst at Danske Bank, commented the situation: “In itself, a possible rate increase in September would not have a material adverse effect on the gold. The gold market considers the question of the rate increase to be very important as it is necessary to know if the Fed is now ready to accelerate this cycle, because the final normalization of interest rates will be on the agenda again. “

Now the market attention is focused on any signals from the United States, including reports of the Federal Reserve representatives. This will give the notion of when we can expect an increase in the pace of the rates growth.

“The idea that the Fed will dare to increase the rate not in September but in October, is limiting the gold purchases,” – said Dominic Schnider from the Hong Kong UBS Wealth Management.

Reuters technical analyst Wang Tao pays attention that gold has failed to push through resistance on the record of $ 1.330, so the cost of the precious metal may fall back again to the support level of $ 1,315.

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