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Gold has risen in price due to the weakened dollar

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Gold has risen in price due to the weakened dollar

Gold has risen in price due to the weakened dollar
September 19
16:00 2016

The gold quotes have slightly grown on Monday due to the weakened dollar. Nevertheless, the growth was limited by the concerns before the meeting of the Federal Reserve and the yield increase of the US government bonds.

In the afternoon gold was worth $ 1.313,12 per ounce in relation to the indicator of the close of the trade session on Friday, which was equal to $ 1.310,06 per ounce.

The US gold futures contract has risen by $ 6.1 to $ 1.316,30 per ounce.

The meeting of the Central Bank of the United States is scheduled for Tuesday and Wednesday. The market is expecting that the regulator will keep the base rate at the former level, but it can give a clear hint at the reality of a rate hike in December.

The rate that has remained unchanged may make the US dollar weak. In perspective, this makes the gold more attractive to buy.

Peter Fertig, analyst at Quantitative Commodity Research, said: “In general, the dollar has slightly weakened, which is good for precious metals and gold in particular … The economic data are not too good, so that they do not have to act right now, but there is a risk that the Fed may surprise everyone, and then the precious metals will drop. ”

In addition, the “bulls” of the precious metal market worry about the increase in the real yield of the US bonds that are tied to the inflation.

The return of the Chinese investors from the Mid-Autumn Festival, in theory, can support gold as well as technical support within $ 1.305 per ounce, 100-day moving average.

Also, an important positive factor is the vigorous investors’ demand for physical gold. The assets of the world’s largest gold exchange-traded fund SPDR Gold Shares increased by more than 1 percent on Friday and amounted to 942.61 tons.

Silver was worth $ 19.19 per ounce against $ 18.77 at the close of the trading on Friday. Platinum was being traded at $ 1.020,05, palladium – by $ 679,50.

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