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Gold prices decline as investors' confidence that the Fed
will begin reducing incentives in September.
On Tuesday and Wednesday, the Fed will hold a two-day meeting, which will determine the duration and the rate of reduction of bond buying program by $ 85 billion a month. According to economists, the original scope of the program will be reduced by $ 10-15 billion .
Gold prices briefly rose after the announcement of the exit of the former U.S. Treasury Secretary Lawrence Summers, the number of applicants for the post of head of the Fed. Summers recused himself , which the market considers a supporter of tight monetary policy , increases the chance of being elected chairman of the central bank's current Vice Chairman Janet Yellen , from which the market tends to expect continuation of soft policy . However, according to players, this will not prevent the reduction of incentives in the short term.
The appeal of gold as a low-risk assets suffered after an agreement between the U.S. and Russia on the destruction of the chemical weapons stockpile of Syrian President Bashar al-Assad. Due to this, managed to prevent a U.S. military strike on Syria and alleviate concerns about the involvement in the conflict in the Middle East oil-producing countries .
Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust on Friday fell by 0.66 percent to 911.12 tons , the biggest decline since Aug. 1.
The cost of the October gold futures on COMEX today dropped to $ 1307.20
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