The price of gold and silver waiting for the statements of the Federal reserve
The gold market this summer remains in the power of monetary policy of the Federal reserve system and block the fundamental news of a local character. A tremendous amount of external geopolitical risk now has no pronounced influence on the value of gold.
Usually the behavior of the U.S. dollar and the global investors visible and illusory risks led by geopolitics are the main catalysts for the formation of movements on gold. But now it’s a little different. Market participants remain convinced that the fed will go to four interest rate hike this year, instead of three repeatedly announced, and this allows the gold price to recover, even when stable stock situation. It is therefore very important to start today’s meeting of the Federal reserve: according to the results can be given clearer guidance on the dynamics of the rates. The signals that the fed is ready to more actively tighten its monetary policy, will put pressure on gold prices.
At the moment, being present and “India factor”, which in early summer has reduced the import of gold by 30% at once. India is considered one of the largest buyers and consumers of the precious metal, and such a noticeable reduction of interest in gold, of course, could not affect prices.
At the same time on the court almost no demand for gold as a safe asset, as a factor of trade wars between the US and China has accounted for global investors, but frankly, no one is afraid of complications.
Today gold prices are near a minimum of 12 months, a Troy ounce of gold traded for $1230. July the “bottom” is on the level of $1216,70. According to “Alpari gold”, likely a trade corridor for gold is now within short-term $1220-1235 per Troy ounce, the medium range is enclosed in the range of $1216-1250.
Silver last two weeks worth of mostly flat $15,19-15,70, and at the moment there is little reason to actively reach out beyond it. At the same time, it is impossible to exclude sharp movements, if the fed on Wednesday will give cause for reflection. In the case of positive attitude of the regulator and willingness to raise rates for the fourth time in late autumn-early winter silver will go to the lower end of the range and test support at the $15.00 per ounce.