FX & CFD trading involves significant risk
Gold prices fell markedly today, due to the uncertainty before a meeting of the Federal Reserve System and the output of key U.S. data this week.
Today starts a two-day meeting of the Fed, the results of which will be announced tomorrow. It is expected that the Fed will keep rates folding third round of quantitative easing (QE3) and reduce its volume by another $ 10 billion to $ 25 billion this is likely the purchase of assets to a halt in October. However, the main debate between FOMC members deployed around the timing of rising interest rates, experts say. Most managers tend to delay the Fed first rate hike as long as they do not have confidence in the stabilization of the country's economic recovery. Many analysts believe that rates will remain at near zero level until at least mid 2015.
"The gold market will remain in the range up to the Fed meeting and economic reports this week. Prices will stay at around $ 1,300, because geopolitical tensions gives strong support to the market ", - said the director of Intelligence Wing Fung Financial Group That Mark.
It is also worth noting that today the EU Council in Permanent Session to 28 countries previously agreed community today at a meeting in Brussels on economic sanctions against Russia, which will affect the financial, defense and energy industry.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu warned of the possibility of prolonged conflict in Gaza, shattering the hope to end the conflict in the near future.
On the physical gold market situation has not changed: buyers are still waiting for lower prices and margins in China are stable at $ 03.02 per ounce.
The course of trade also affected previously submitted data for the U.S., which showed that consumer confidence index from the Conference Board rose in July to 90.9 (1985 = 100), compared with 86.4 in June. The current conditions index rose to 88.3 from 86.3, while the expectations index rose to 92.7 from 86.4 in June.
The cost of the August gold futures on the COMEX today fell by $ 6.2 - to $ 1297.20 per ounce.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.