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Gold has stabilized on the weakened expectations of the Fed rate growth

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Gold has stabilized on the weakened expectations of the Fed rate growth

Gold has stabilized on the weakened expectations of the Fed rate growth
September 16
15:00 2016

On Friday the price of gold is stable at the level, which is a bit higher than the minimum figure for the two weeks. The stability of gold is due to the weak data from the United States, which have reduced the Fed rate growth even more then it was expected next week. However, the precious metal finishes the week with the negative dynamics against the background of the uncertain monetary policy and the dollar, which has been in a stronger position.

The information from CME FedWatch reflects the situation in which futures traders are trying to understand the probability of the rate increase by only 12 per cent in September against the 15 percent on Wednesday after the inconclusive data on retail sales and the industrial production in the United States.

In the middle of the day gold cost $ 1.310,95 per ounce. On Thursday it was trading at around $ 1.313,80 per ounce at the session closing.

Futures contracts for gold have fallen in price by $ 1.6 – $ 1.316,40 per ounce.

Mitsubishi’s analyst Jonathan Butler commented: “Gold slightly rose in price yesterday after the data on retail sales, which is a bit surprising. But if we look at what is happening in other places, we can see that oil has become cheaper this week, shares have retained a part of the earlier growth. And these factors could easily inhibit the growth of gold. “

“Now market participants are waiting for the meeting of the Fed and the Bank of Japan next week”, – said the expert.

The US and Japanese Central Banks will meet on 20-21 September at the meeting, which will focus on the monetary policy.

Despite the fact that the expectations of the September rate hike are becoming weaker, the survey results of Reuters, in which hundreds of experts took part, say that the experts predict a rate increase of 70 percent in December.

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