Ahead of the meeting of The Fed, gold noted the decline of 2 Consecutive Weeks

Gold tracked continue to weaken throughout the trading session Friday (22/31) in which the precious metal prices leading to a decrease in 2 consecutive weeks. When in early July, gold briefly touched the highest level versus the dollar post-war referendum, United Kingdom. Based on the daily time frame shows the decline in gold prices has already started to happen since July 11, until now.

After buying large amounts of gold Brexit post last June that drives the gold rally up to touch the 1375 USD per troy ounce which is the highest level for more than two years, the price of gold continues to decline. The decline in gold prices over the last 2 weeks is more caused by the action of profit taking and investors seemed to take heart ahead of the Federal Reserve meeting next July 27.

Earlier in the day, the gold price had shot up after the European Central Bank doesn't change policy toward interest rates and asset purchase in which gold briefly climbed up to 1333 USD per troy ounce, but throughout the trading session this Friday gold thus again weakened 0.98 percent to touch the level of low daily 1319.57 USD per troy ounce.



A Reuters survey: interest rates The Fed rode the end of the year 2016
Based on the results of a survey conducted by Reuters showed that the majority of economists estimate the Federal Reserve recently will perform rate hike at least at the end of the year 2016. But unfortunately this is not that much encouraging increase in the gold price. Some officials of The Fed some time ago also conveyed similar views against the chance of a rise in interest rates on the US central bank which should ideally take place after the presidential elections.

However, market participants opted to wait for the results of the upcoming July 27 meeting to figure out signals rate hike and the projection of the U.S. economy. When the results of the decision of the meeting of The Fed interest rate rise signals the end of the year it will most likely gold will come back strengthened. Gold is currently at the level of USD 1322.79 per troy ounce.