The Price Of Gold Decreases, The Focus On The Results Of The Meeting Of The Fed

The gold price decline is thin in the Asian session on Monday (25/16) with investors prepared to await the decision of the meeting of the central bank of the United States and Japan. When this news was revealed, XAU/USD traded in a range of price levels 1.316 u.s. dollars.

In the meantime. on the New York Mercantile Comex, the price of gold futures for delivery in December dropped by 0.60 percent to 1.315 u.s. dollars per troy ounce. While the price of silver futures for delivery in September became to 19 us dollars per troy ounce of significant decline of 0.93 percent and the price of copper futures for delivery in September increased thin be 2,241 u.s. dollars per pound.

Although gold has experienced the increase by 25 percent this year due to an anxiety towards the global economy, growth conditions on trading Friday last week, the price of gold started flattens out and covered with the lowest price level for three weeks along with the increase in the probability against a rise in interest rates this year driven by the U.S. dollar. Investors are now tracked tend to do transactions in equity markets rather than buy the safe haven assets. During the past week, gold has already dropped by 4.40 u.s. dollars.

Predictions Of A Rise In Interest Rates By The Fed
Some important data on the latest U.S. release was able to rekindle speculation that the Fed will raise interest rates before the end of the year 2016. Possibility to hike US interest rates before the current month of December i.e. amounting to 45 per cent, much higher when compared with the predictions of several weeks ago which was only 20 percent.

In the coming week, investors will give most of their attention on the U.S. monetary policy related statements to know indications and signals as to when interest rates will occur. In addition, some market participants will also be waiting for the announcement of the BoJ decision amongst the existence of approximate that of the BoJ still provide the stimulus.

As it is known that the rise of the U.S. dollar when interest rates rise will drive the gold price decline, reducing investor interest toward the safe haven asset gold price as well as make more expensive for holders of other currencies other than u.s. dollars.