Gold is rising, but the experts are afraid of the sale
On Thursday the gold prices were increasing. But the experts report that quotes can still fall if the market is satisfied with the December interest rate hike due to the strong US economic data.
In the middle of the day the precious metal cost $ 1.257,7 per troy ounce against $ 1.254,93 per ounce at the end of the bidding process on Friday.
The US futures contracts for gold have jumped by $ 4.6 , amounting to $ 1.258,40 per ounce.
Gold has grown in price almost by 1/5 from the beginning of 2016, but it has lost 7 percent since the beginning of September. On 4 October the price fell more than by $ 40. This is the strongest fall for one day during the past 15 months, which has happened due to the strong US economic data.
According to Georgette Boele, commodity strategist at ABN AMRO, if investors- “bulls” currently start selling at the market, this will, probably, trigger a snowball effect.
In particular, she said: “Today, it seems, we are mostly experiencing the technical trade, but the market is looking for a new momentum that can push prices in any direction.” Moreover, Boele noted that the information about retail sales in the US, expected on Friday, could cause such an impulse.
On the eve Boele worsened the outlook for the precious metal prices. She said that the tendency to increase had been over and by the end of the year the gold price would be equal to $ 1,200 per ounce.