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Gold is falling in price due to the dollar, which is strengthening its position

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Gold is falling in price due to the dollar, which is strengthening its position

Gold is falling in price due to the dollar, which is strengthening its position
September 15
15:00 2016

On Thursday gold is falling in price at the start of the trading due to the strengthened US dollar and European shares.

In the afternoon the price of gold was equal to $ 1.320,73 per ounce in relation to the result of the closing of the trading session the previous day – $ 1.322,60 per ounce.

The US futures for the precious metal have dropped in price by $ 2.0 to $ 1.324,10 per ounce.

Oxford Economics commodity director Dan Smith said: “The Fed factor is obviously quite important. We still believe that the dollar will be strengthening against the background of the interest rates increasing and the US economy will improve in the second half of the year. “

Contracts for the United States interest rate show that the expectations of a rate hike next week have been remained at a low level, but the US dollar can suddenly rise due to any statement of the Fed representatives in favor of increasing the rate until the end of 2016.

Gold is a very sensitive asset for the growth of interest rates, because it increases the alternative costs of the assets ownership that do not bring interest income.

The dollar has risen in price by 0,2 percent against a basket of six major currencies.

The HSBC review says: “The gold market is in a defensive position. It remains under pressure, despite the clear decline in market expectations of the US interest rate hike later this month. “

The market attention will be focused on the Bank of England on Thursday. It undertook the easing of the monetary policy last month. But it is expected that the Bank will not make further steps on the signals that it has overestimated the initial shock because of the choice of the UK citizens for the country’s economy.

The range of the spot price of the precious metal is currently equal to about $ 1.319- $ 1.330 per ounce. And, as noted by the technical analyst at Reuters Wang Tao, a vector of the price movement would show the output beyond the boundaries of this range.

Silver was being traded at $ 18.96 per ounce against $ 18.952 at the close of the previous trading session. Platinum price was $ 1.032,15 against $ 1.032,49 of the previous close. Palladium was worth $ 654.60 against $ 654.00 relatively.

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